factual

Who reimburses Bumper Man for due diligence costs related to a prospective Certified Technician?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (iii) The prospective Certified Technician will, upon Franchisor's request, reimburse Franchisor for its actual costs and expense incurred in conducting due diligence of such Certified Technician including: (A) a criminal background investigation; and (B) a credit inquiry.

Source: Item 23 — RECEIPTS (FDD pages 45–180)

What This Means (2025 FDD)

According to Bumper Man's 2025 Franchise Disclosure Document, a prospective Certified Technician is responsible for reimbursing Bumper Man for the actual costs incurred during the due diligence process. This reimbursement covers expenses related to a criminal background investigation and a credit inquiry.

This means that if a Bumper Man franchisee wants to hire a Certified Technician, the technician themselves will have to pay for the costs associated with Bumper Man's investigation into their background and credit history. This is a condition that must be met before Bumper Man approves the technician.

For a prospective Bumper Man franchisee, this is a notable point as it reduces the financial burden on the franchisee when seeking to hire a Certified Technician. It is common in franchising for franchisees to bear the costs of employee screening, so this arrangement shifts that responsibility to the technician. Franchisees should ensure that prospective technicians are aware of this requirement upfront to avoid any misunderstandings or delays in the approval process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.