How is the renewal fee calculated for a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date |
|---|---|---|
| Renewal Fee | The greater of 3% of the then current initial franchise fee and $1,000 | 6 months before expiration of term of Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the renewal fee is the greater of 3% of the then-current initial franchise fee or $1,000. This fee is due 6 months before the expiration of the current franchise agreement.
For a prospective Bumper Man franchisee, this means that when the time comes to renew their franchise agreement, they will need to calculate 3% of the initial franchise fee at that time. They will then compare that amount to $1,000 and pay whichever is higher. This ensures that Bumper Man receives a fair renewal fee that reflects the current value of the franchise.
It is important to note that the initial franchise fee may change over time, so the renewal fee could be significantly different from what was initially paid. A prospective franchisee should factor this potential increase into their long-term financial planning. Also, the franchisee needs to mark their calendar and remember to pay the renewal fee six months before the franchise agreement expires.