Who is ultimately responsible for ensuring Bumper Man customers pay invoiced amounts?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
As described in our invoice processing procedures set forth in the Manual, you will send us copies of all customer invoices for bumper repair services you perform for Bumper Man customers. We will bill the customers directly and collect amounts owed according to the invoices you provide. We are not obligated to independently verify your invoices for accuracy or completeness. The invoice submission software requires you to verify that each invoice you submit is true and accurate. We will bill the Bumper Man customers you service directly and collect amounts due as specified in each invoice. If the Bumper Man customer does not pay invoiced amounts when due, we may, at our sole option, attempt to collect such past due amounts, but you are ultimately responsible for ensuring your customers pay invoiced amounts for the services you provide.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–27)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, while Bumper Man handles the direct billing and collection of payments from customers, the franchisee is ultimately responsible for ensuring that their customers pay the invoiced amounts for the services provided. Specifically, Bumper Man will bill customers based on the invoices submitted by the franchisee and collect payments. However, if a customer fails to pay, Bumper Man may attempt to collect the past due amount, but the responsibility for ensuring payment ultimately falls on the franchisee.
This means that a Bumper Man franchisee needs to be proactive in managing customer relationships and ensuring timely payments. While Bumper Man provides the billing and collection services, the franchisee should implement strategies to encourage customers to pay their invoices. This could include building strong relationships with customers, offering incentives for prompt payment, or implementing credit policies to minimize the risk of non-payment.
It's important to note that Bumper Man may decline to process invoices for customers who do not meet their standards for creditworthiness. In such cases, the franchisee is expected to cooperate with Bumper Man in collecting past-due amounts and facilitating the customer's account being brought current so that the franchisee can resume providing services to that customer. This highlights the importance of communication and collaboration between the franchisee and Bumper Man in managing customer accounts and ensuring payment for services rendered.
Overall, while Bumper Man provides billing and collection services, the franchisee bears the ultimate responsibility for ensuring customer payments. This requires franchisees to actively manage customer relationships, implement strategies to encourage timely payments, and collaborate with Bumper Man in managing customer accounts.