Who is responsible for service charges associated with the electronic transfer of funds to a Bumper Man franchisee?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Electronic Transfer of Funds. Upon execution of this Agreement and at any time thereafter as Franchisor may require, Franchisee must sign the electronic transfer of funds authorization attached to this Agreement as Exhibit C, and all other documents and instruments necessary to permit Franchisor to disburse by electronic funds transfer to Franchisee's designated bank account the remaining balance of invoiced amounts after deduction of the Continuing Service Fee and any other amounts owed to Franchisor or its Affiliates. Franchisee is responsible for any service charges, penalties, fines, or other similar expenses associated with the transfer of funds described herein.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the franchisee is responsible for any service charges, penalties, fines, or other similar expenses associated with the electronic transfer of funds. This means that when Bumper Man disburses funds to the franchisee's designated bank account via electronic funds transfer, any fees or charges levied by the bank or transfer service will be the responsibility of the franchisee, not Bumper Man.
This arrangement is fairly common in franchising, as it ensures that the franchisor can disburse the correct amount without having to account for varying bank fees. It also places the onus on the franchisee to manage their banking relationships and minimize these charges.
For a prospective Bumper Man franchisee, this implies that they should factor in these potential service charges when budgeting and forecasting their cash flow. It would be prudent to discuss these charges with their bank to understand the potential costs involved and explore options for minimizing them. Additionally, the franchisee should ensure they understand the electronic transfer of funds authorization attached to the Franchise Agreement as Exhibit C.