What does Bumper Man believe regarding potential loss contingencies arising from environmental matters or lawsuits?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
(as of the Effective Date, $500). Franchisee will use the digital version of the Manual in its current form available to Franchisee on the Intranet as instructed. Franchisee will treat the Manual as confidential and maintain the information in the Manual as Confidential Information. Franchisee will return all hard copies of the Manual to Franchisor
immediately on expiration or termination of this Agreement.
(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. 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. Franchisee will be solely responsible for procuring and continuously maintaining thereafter all approvals, permits, and/or licenses required for the operation of the Business.
(c) Credit Card and Other Methods of Payment. Franchisor may, at its option, designate in writing credit and debit card issuers or sponsors check or credit verification services, financial center services, and electronic funds transfer systems, and upon any such designation by Franchisor, Franchisee must maintain credit card relationships with such credit and debit card issuers or sponsors check or credit verification services, financial center services, and/or electronic funds transfer systems in connection with the operation of the Bumper Business and refrain from using any services or providers that Franchisor has not approved in writing or for which Franchisor has revoked its approval.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
Based on the 2025 Bumper Man FDD, there is no explicit mention of the company's belief regarding potential loss contingencies arising from environmental matters or lawsuits. However, the document does state that the franchisee is responsible for operating the Bumper Business in compliance with all applicable laws. The franchisee must also notify Bumper Man immediately if any legal action, suit, proceeding, or administrative action commences that could adversely affect the operation of the Bumper Business or the franchisee's financial condition. This includes any notice of violation or alleged violation of applicable laws, including those related to health and safety.
Additionally, the franchisee is required to indemnify, defend, and hold harmless the franchisor from any losses or expenses arising out of the operation or closing of the Bumper Business, any breach of the franchise agreement, or the franchisee's performance of Bumper repair services. This indemnification clause suggests that the franchisee bears significant responsibility for any liabilities arising from their business operations.
While the FDD does not directly address Bumper Man's beliefs about loss contingencies, the clauses regarding compliance with laws and indemnification indicate that franchisees are expected to manage and bear the brunt of legal and environmental risks associated with their Bumper Man operations. A prospective franchisee should seek clarification from Bumper Man regarding specific environmental or legal risks associated with the business and what support or guidance the franchisor provides in managing these risks.