Is there any portion of the Bumper Man initial franchise fee that is always non-refundable?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
IAL FEES**
You must pay us an Initial Franchise Fee of $50,000 when you sign the Franchise Agreement. Most franchisee operators pay in a lump sum. However, for qualified candidates who meet our credit criteria, we may accept one half ($25,000) of the Initial Franchise Fee upon execution of the Franchise Agreement and the second half of the Initial Franchise Fee at the date we specify in the financing agreement. See Item 10 for an explanation of financing terms.
We will refund part of the Initial Franchise Fee if we determine in our sole discretion that you have not satisfactorily completed initial training, less our costs and expenses in providing training and support to you (which costs and expenses will not exceed $15,000). Other than this single exception, the Initial Franchise Fee is fully earned by us upon receipt and non-r
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the initial franchise fee of $50,000 is generally non-refundable. However, there is a specific circumstance where a portion of the fee may be refunded. If Bumper Man determines, in its sole discretion, that a new franchisee has not satisfactorily completed the initial training program, a partial refund of the initial franchise fee may be issued.
However, this refund is not guaranteed, and Bumper Man will deduct its costs and expenses incurred in providing training and support. The FDD specifies that these costs and expenses will not exceed $15,000. This means that even if a franchisee does not complete training satisfactorily, at least $35,000 of the initial $50,000 fee is non-refundable.
This policy is fairly typical in the franchise industry, as franchisors often incur significant expenses in setting up a new franchisee, regardless of whether the franchisee completes training. Prospective Bumper Man franchisees should carefully consider the training requirements and their ability to meet them to minimize the risk of forfeiting a significant portion of the initial franchise fee.