What actions by a Bumper Man franchisee or its principals related to legal issues can lead to termination?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
immediately upon delivery of Notice to Franchisee if Franchisee (or any of its Principals or Affiliates) violates any Applicable Law or has any necessary license or certification) revoked or suspended in whole or in part, including without limitation, suspension or revocation of Franchisee's or its Operating Principal's driver's license.
18. DEFAULT AND TERMINATION.
The occurrence of any of the following will adversely and substantially affect the interests of Franchisor and will be deemed an Event of Default constituting just cause for exercising any of the remedies set forth herein:
- (a) Franchisor may terminate this Agreement upon delivery to Franchisee of Notice as a result of the occurrence of any of the following Events of Default and Franchisee's failure to cure such Event of Default within the cure period described below, if any, and absent a cure period, immediately upon Franchisor's Notice to Franchisee:
- (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;
(b) Compliance with Applicable Law; Operating Permits. Franchisee will at all times operate the Bumper Business in full compliance with Applicable Law. Franchisee must notify Franchisor in writing immediately upon the commencement of any legal action, suit, or proceeding, any administrative action, or the issuance of an order of any court, agency, or other governmental instrumentality, which may adversely affect the operation of the Bumper Business or Franchisee's financial condition; or the delivery of any notice of violation or alleged violation including arrest of Franchisee (if Franchisee is an individual) or Franchisee's Operating Principal (if Franchisee is an Entity) of any Applicable Law, including those relating to health or safety.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, several legal-related actions or events involving the franchisee, its principals, or affiliates can lead to the termination of the franchise agreement. Bumper Man can terminate the agreement if the franchisee or its principals or affiliates have any necessary license or certification revoked or suspended, including the suspension or revocation of the franchisee's or its operating principal's driver's license.
Additionally, Bumper Man may terminate the agreement if the 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 Bumper Man believes will materially and adversely affect the reputation of the Bumper Business, any other Bumper Man business or the goodwill associated with Marks.
Furthermore, the franchisee is obligated to notify Bumper Man in writing immediately upon the commencement of any legal action, suit, or proceeding, any administrative action, or the issuance of an order of any court, agency, or other governmental instrumentality, which may adversely affect the operation of the Bumper Business or Franchisee's financial condition; or the delivery of any notice of violation or alleged violation including arrest of Franchisee (if Franchisee is an individual) or Franchisee's Operating Principal (if Franchisee is an Entity) of any Applicable Law, including those relating to health or safety. Failure to do so could potentially lead to further action by the franchisor.