What sections of the Bumper Man Franchise Agreement address the franchisee's obligation to pay fees?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
e services you provide.
We will disburse amounts collected for bumper repair services that you provide during the previous month on the 1st and 16th day of each month based upon the invoices you submit to us, less the Continuing Service Fee and any other amounts due to us under the Franchise Agreement. (Franchise Agreement – Section 4(e)).
If a Bumper Man customer does not meet our standards for creditworthiness, we may decline to process invoices for such customer. You will cooperate with us in collecting past-due amounts and facilitate bringing the Bumper Man customer's account current so that you may resume performing bumper repair services for such Bumper Man customer.
You must: (a) use any proprietary software programs, system documentation manuals and other proprietary materials that we require in connection with the operation of the Bumper Business; and (b) purchase new or upgraded software programs, system documentation manuals and other proprietary materials at then-current prices whenever we adopt new or upgraded programs, manuals and materials system-wide. You must enter into all software license agreements, "terms of use" agreements and software maintenance agreements, in the form and manner prescribed by our approved vendors, and pay all fees imposed under the agreements, as set forth in the Manual. (Franchise Agreement – Section 7). Neither we nor any third party is obligated to provide ongoing maintenance repairs upgrades or updates to any computer hardware, software, or related equipment. Costs of any optional or mandatory upgrades or maintenance that you may incur is unpredictable and determined by independent third-party vendors and will vary according to the computer system you choose to use.
Confidential Manual.
After you sign your Franchise Agreement and pay the initial franchise fee, we will give you access to our Manual. The Manual may be in electronic format. A copy of the Manual Table of Contents is attached to this disclosure document as Exhibit D. We consider the contents of the Manual to be proprietary and confidential and you are bound by the restrictive covenants regarding our confidential information set forth in the Franchise Agreement with respect to use of the Manual. The Manual for development and operation of the Bumper Business contains 69 pages. (Franchise Agreement – Section 9(a)).
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, several sections of the Franchise Agreement outline the franchisee's obligation to pay fees. Specifically, Section 4(e) is referenced in Item 11 regarding the Continuing Service Fee and any other amounts due to Bumper Man. Additionally, Item 7, also referenced in Item 11, discusses software license agreements, terms of use agreements, and software maintenance agreements, all of which require the franchisee to pay fees as set forth in the Manual.
Item 23 also mentions Section 16 regarding the Transfer Fee, which is equal to 20% of the purchase price of the Bumper Business. Furthermore, Item 23 discusses that if a franchisee wishes to transfer the Bumper Business to another person and enter into Bumper Man's current franchise agreement for a new Designated Area, the franchisee must pay Bumper Man a fee equal to 70% of the then-current franchise fee.
Finally, Item 10 discusses that new franchise operators who meet Bumper Man's credit criteria may pay half of the initial franchisee fee upon the execution of the Franchise Agreement and pay the remaining half (up to $25,000) in 120 equal semi-monthly installments during a five-year term at an interest rate of 10% per annum. Default of payment obligations under the note constitutes a default under the Franchise Agreement for which Bumper Man may terminate the Franchise Agreement if the franchisee fails to cure the default.