Bumper Man

The royalty rate of 25% is significantly higher than the typical range of 5.4-7.5% for automotive franchises. Can you explain the value proposition that justifies this rate and how it compares to competitor royalty structures?

Termination rates have increased to 3.0%, above the typical range of 0.0-1.9%. What are the primary reasons franchisees are being terminated, and are these preventable through better training or support?

Unit closures increased from 1 in 2022 to 6 in 2024. Can you provide detailed information on why these units closed and whether any were due to market saturation, competition, or franchisee underperformance?

The transfer fee of $20 is unusually low compared to the typical range of $4,500-$13,750. Is this the actual transfer fee, and if so, what services or administrative costs are covered by this amount?

Your initial term is 5 years, which is shorter than the typical 10-15 year range. What is the rationale for the shorter initial term, and how does it impact franchisor-franchisee relationship stability?

The total potential term of 40 years exceeds typical franchises by 10-25 years. Can you clarify the renewal process and whether there are any material changes to terms, fees, or obligations at renewal?

Since there have been no litigation cases in 3 years, what is your dispute resolution track record? Have there been any disputes resolved through arbitration or mediation that did not result in formal litigation?

Your franchise fee of $50,000 is at the high end of the range. What are the specific components of this fee, and what training, equipment, or support is included before a franchisee opens?

The termination clause allows immediate termination for 14 non-curable defaults. Can you provide the complete list of these defaults and explain why they cannot be cured with proper notice?

All disputes must be resolved through binding arbitration in Dallas, Texas, with class action and jury trial waivers required. For a franchisee operating outside Texas, what are the practical implications of litigating in Dallas?

Personal guarantees from all principals with unlimited scope are mandatory. Can you explain the scope of personal liability and provide examples of how personal guarantees have been enforced in disputes?

Spousal guarantees are mandatory regardless of ownership interest. How is this enforced, and what happens if a spouse does not formally execute a guarantee?

The non-compete clause is 2 years and 25 miles. Can you provide examples of how aggressively this clause has been enforced, and are there any cases where franchisees attempted to open competing businesses?

In 2023-2024, what percentage of closures were attributable to voluntary exit versus franchisor termination, and were there common factors among units that closed versus those that remained?

How many franchisees are currently in compliance with all franchise agreement terms, and what is the distribution of minor versus major violations across the system?

What support or remediation programs exist for franchisees struggling with profitability before termination becomes necessary?

The renewal fee is $1,000. Are there additional costs, training requirements, or agreement modifications that occur at renewal after the initial 5-year term?

Can you provide a detailed financial projection for a typical unit, including breakeven timeline and realistic profit expectations based on Item 19 or other performance data?

What percentage of current units have completed at least one renewal, and what is the renewal rate? Do units renew at higher or lower rates than the automotive franchise average?