factual

Are there any exclusions to the definition of 'Gross Sales' when calculating fees for a Bumper Man franchise?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. "Gross Sales" means the total selling price of all Designated Services and all income of every other kind and nature related to the Bumper Business, whether for cash, cash equivalents, or credit, and regardless of collection in the case of credit. In the case of promotional discounts implemented by Franchisor and for which participation in the promotion is required of Franchisee, the amount actually paid by the customer after the discount for the Designated Services, rather than the original amount, will be considered for purposes of calculating Gross Sales. Gross Sales does not
  • include amounts collected by Franchisee for performance of the Designated Services for an individual consumer on a single vehicle at the request of such consumer.

Source: Item 6 — OTHER FEES (FDD pages 12–15)

What This Means (2025 FDD)

According to Bumper Man's 2025 Franchise Disclosure Document, the definition of 'Gross Sales' has specific inclusions and exclusions that affect the calculation of fees. Gross Sales includes the total selling price of all Designated Services and all income of every other kind and nature related to the Bumper Business, whether for cash, cash equivalents, or credit, and regardless of collection in the case of credit. When Bumper Man implements promotional discounts that franchisees are required to participate in, the amount actually paid by the customer after the discount is applied will be used to calculate Gross Sales, rather than the original price.

However, the definition of Gross Sales for a Bumper Man franchise specifically excludes amounts collected by the franchisee for performing Designated Services for an individual consumer on a single vehicle at the request of such consumer. This exclusion could significantly impact the revenue on which the Continuing Service Fee is based, potentially lowering the fee for franchisees who perform a substantial amount of work directly requested by individual consumers.

Understanding these inclusions and exclusions is crucial for prospective Bumper Man franchisees to accurately forecast their potential revenue and associated fees. Franchisees should be aware of how promotional discounts and direct consumer requests will affect their Gross Sales calculations, as this will directly impact their financial obligations to the franchisor.

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.