BumperDoc
BumperDoc specializes in automotive reconditioning services, offering quick and affordable repairs to vehicles. Known for its efficient body damage repair solutions, BumperDoc operates in the competitive auto repair franchise market.
BumperDoc franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment costs are not specified in exact figures within these excerpts. However, [p.38] indicates that initial expenditures from the franchisor, affiliates, or approved vendors represent approximately 90% of your total initial purchases. Additionally, [p.37] lists various estimated start-up expenses including utilities, telephone, accounting expenses, equipment leases, and more, but does not provide a comprehensive total cost for opening one franchise.
What is the initial franchise fee?
The initial franchise fee is $29,900, which must be paid after signing the Franchise Agreement and once your store has opened [p.35]. This fee is not refundable except as described in Item 5 and Section IX(C) of the Franchise Agreement [p.178].
What are the ongoing royalty and advertising fees?
Ongoing royalty and advertising fees are based on a defined percentage of franchise gross revenues and are recognized when earned [p.94]. These fees include contributions by franchisees for advertising, with specific details about how any discrepancies in EFT payments are handled [p.160].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not mention the duration of the initial franchise agreement or the renewal process beyond stating that a renewal may be possible under certain conditions [p.135].
Can I sell or transfer my franchise, and what does that require?
Based on the provided excerpts, the document mentions a form of release for transferring a franchise in Maryland [p.178], but it doesn't provide detailed information about selling or transferring franchises generally. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is a bankruptcy of the franchisee where the provision may not be enforceable under Title II, U.S. Code, and Section 110 [p.185]. Additionally, the franchisor has the right to terminate upon events such as the failure to lease or purchase the location within 60 days, or the failure to open the location within 60 days [p.106]. Other grounds for termination are specified in Paragraphs 2D and 2E of the Franchise Agreement [p.121], though the exact terms are not detailed here.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Yes, you receive a protected territory. This means that during the term of the agreement, the franchisor will not establish nor franchise any additional BUMPERDOC Centers within your protected territory, except for company-owned locations. The boundaries of this territory are based on factors such as distance, roads, towns, drive-times, zip codes, population, or number of vehicles, and most territories contain a minimum population of 100,000 people [p.105].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training at the Center [p.113], and may require supplemental or refresher training programs, technical training, sales meetings, operations meetings, advertising meetings, conventions, and other training from time to time during the term of the franchise [p.42, p.46]. These trainings can be conducted in various locations within the U.S., determined by the franchisor [p.46]. The franchisor covers the cost of instructors and materials but requires the franchisee to cover travel, lodging, and related expenses [p.42, p.46]. Additionally, the franchisor may request retraining at their expense for up to $1,000 in fees [p.42].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one. Additionally, they can supplement the information provided in Item 19 by offering possible performance at a particular location or under specific circumstances [p.54]. However, the franchisor does not make any representations about future financial performance and does not authorize its employees to do so either orally or in writing [p.54].
What am I restricted to selling, and where must I buy supplies?
You are not restricted in the customers to whom you may sell goods or services, but you must offer only those products and services that are periodically authorized in writing by the franchisor. As for supplies, with the exception of stationery packages and promotional materials, you may purchase inventory, supplies, equipment, and signage from third parties if you choose to do so [p.36]. However, you are required to purchase initial inventory, supplies, equipment, and signs directly from the franchisor or as directed by them [p.46].