What actions are considered 'injurious' or 'prejudicial' to the goodwill associated with the Marks and System of Bumper Man?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will refrain from any business or advertising practice which may be injurious to Franchisor's business, to the business of other Bumper Man businesses, or to the goodwill associated with the Marks, provided, however, that nothing in this Section 9(b) or elsewhere in this Agreement restricts or is intended to restrict Franchisee's communications with any state or federal law regulator or enforcement authority about potential violations of law.
For so long as you are Franchisee's Principal under the Franchise Agreement and for a period of two years from the date you cease to be Franchisee's Principal, you will not, either directly or indirectly, individually or through, on behalf of, or in conjunction with any other person:
(iii) Perform, directly, any or indirectly, any other act injurious to or prejudicial to the goodwill associated with the Marks and the System
(vi) Franchisee (or any of its Principals or Affiliates) is or has been held liable or convicted by a court of law, pleads or has pleaded no contest to, a felony, indictable offense or other unlawful act, engages in any dishonest or unethical conduct or otherwise engages in any act or conduct which Franchisor believes will materially and adversely affect the reputation of the Bumper Business, any other Bumper Man business or the goodwill associated with Marks;
(vii) Franchisee's misuse or unauthorized use of the Marks, including without limitation Franchisee's misuse or unauthorized use of the Marks on its Social Media pages or other Internet site, or registration of a domain name incorporating the Marks;
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, several actions can be considered 'injurious' or 'prejudicial' to the goodwill associated with the Marks and System. These include any business or advertising practice that may harm Bumper Man's business, other Bumper Man franchises, or the goodwill of the Marks. Additionally, if the franchisee's Principal ceases to be associated with the Bumper Business, they must not perform any act injurious or prejudicial to the goodwill associated with the Marks and the System.
Specifically, the franchisee must operate the Bumper Business in full compliance with all applicable laws. They are also required to notify Bumper Man immediately of any legal or administrative actions that could adversely affect the business or their financial condition, including any notices of violation or alleged violations of the law. The franchisee is responsible for obtaining and maintaining all necessary permits and licenses for operating the business.
Furthermore, the franchisee's misuse or unauthorized use of the Marks, including on social media or through domain name registration, is considered detrimental. Dishonest or unethical conduct, or any actions that Bumper Man believes will materially and adversely affect the reputation of the Bumper Business or the goodwill associated with the Marks, are also prohibited. These stipulations are designed to protect the brand's reputation and ensure consistent quality across all Bumper Man franchises.
These restrictions typically extend for a defined period and within a specific geographic radius after a franchisee's involvement with Bumper Man ends, as highlighted in the non-compete clauses. This ensures that former franchisees do not leverage their knowledge and experience to unfairly compete with the Bumper Man system, thereby safeguarding the brand's goodwill and market position.