What is the term length in years for the financing offered by Bumper Man?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
rument you execute.
New franchise operators who purchase a new Bumper Man franchise and who meet our current credit criteria may pay us 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, secured by your right, title and interest in the Franchise Agreement. Default of your payment obligations under the note constitutes a default under the Franchise Agreement for which we may terminate the Franchise Agreement if you fail to cure your default of your payment obligat
Source: Item 10 — FINANCING (FDD pages 21–22)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, qualified new franchise operators may be eligible to finance a portion of the initial franchise fee. Specifically, Bumper Man may finance up to half of the initial franchise fee, with the maximum amount financed being $25,000. The other half of the $50,000 initial fee is due as a down payment.
The financing term for this arrangement is five years. The financed amount is repaid in 120 equal semi-monthly installments. The interest rate on the financed amount is 10% per annum. This financing is secured by the franchisee's rights and interests in the Franchise Agreement.
It's important to note that default on the payment obligations under the financing note constitutes a default under the Franchise Agreement. This means that if a franchisee fails to make timely payments, Bumper Man has the right to terminate the Franchise Agreement. This highlights the importance of carefully considering one's financial situation and ability to meet the payment obligations before entering into a franchise agreement with Bumper Man.