What conditions must a Bumper Man franchisee meet to renew their franchise agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
attached to this disclosure document.**
| Provision | Agreement | Summary |
|---|---|---|
| a. Term of the franchise | Section 3(a) | Five years. |
| b. Renewal or extension of | Section 3(b) | Seven additional five-year terms. |
| term | ||
| c. Requirements for you to renew or extend | Section 3(b) | Your renewal right permits you to remain as a franchisee after the initial term of your Franchise Agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal, including signing our then-current form of franchise agreement, which |
| Section in Franchise | ||
| --- | --- | --- |
| Provision | Agreement | Summary |
| u. Dispute resolution by arbitration or mediation | Section 24 | Except for certain claims, all disputes must be mediated, and if not resolved, arbitrated in Texas unless contrary to applicable state law. |
| v. Choice of forum | Section 24(c)(7) | Litigation must be in the U.S. District Court for |
| the Northern District of Texas, Dallas Division | ||
| or District Courts of Texas serving Dallas | ||
| County, Texas (subject to state law). | ||
| w. Choice of law | Section 24(b) | Texas law applies (subject to state law) |
| Provision | Section in Franchise | Summary |
| Agreement | ||
| ------------------------------------------------------ | ----------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Business without our prior written consent; you | ||
| or your principals or affiliates being held liable | ||
| or convicted of a felony, indictable offense or | ||
| other unlawful act or you or your principals or | ||
| affiliates engaging in any dishonest or unethical | ||
| conduct or act that may materially or adversely | ||
| affect the brand, System or goodwill associated | ||
| with the Marks; any unauthorized use or misuse | ||
| of the Marks; any unauthorized transfer under | ||
| Section 16 by you or any of your principals or | ||
| affiliates; any unauthorized disclosure or use of | ||
| our confidential information (including without | ||
| limitation the Manual); any failure by you, your | ||
| principals or your operator to comply with the | ||
| representations, warranties and covenants set | ||
| forth in the Franchise Agreement; termination by | ||
| us or our affiliates of any other agreement with | ||
| you or your affiliates; failure to pay any taxes | ||
| applicable to the Bumper Business and its | ||
| operations; failure to comply with applicable | ||
| law; loss or revocation of any license or permit | ||
| required to operate the Bumper Business; if, on | ||
| three or more occasions in any 12-month period, | ||
| you fail to submit when due reports or other | ||
| information | ||
| required | ||
| under | ||
| the | ||
| Franchise | ||
| Agreement, fail to pay when due any amounts | ||
| due to us or our affiliates or fail to materially | ||
| comply | ||
| with | ||
| the | ||
| Franchise | ||
| Agreement, | ||
| regardless | ||
| of | ||
| whether | ||
| you | ||
| corrected | ||
| such | ||
| failures; less than 35% of your Gross Sales | ||
| during each month in any consecutive 2-month | ||
| period is generated from the repair of metal | ||
| bumpers; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a franchisee has the right to renew their franchise agreement for seven additional five-year terms, following the initial five-year term. However, to exercise this renewal right, the franchisee must meet all required conditions, including signing Bumper Man's then-current form of franchise agreement.
Additionally, the franchisee must not be in a situation that would allow Bumper Man to terminate the agreement. This includes a wide range of potential violations, such as operating a business without prior written consent, any principal being held liable or convicted of a felony, engaging in dishonest or unethical conduct that could adversely affect the Bumper Man brand, unauthorized use of the Marks, unauthorized transfer, unauthorized disclosure of confidential information, failure to comply with representations, warranties, and covenants, termination of any other agreement with Bumper Man, failure to pay applicable taxes, failure to comply with applicable law, or loss/revocation of required licenses or permits.
Furthermore, termination can occur if, on three or more occasions in a 12-month period, the franchisee fails to submit reports or information when due, fails to pay amounts due to Bumper Man or its affiliates, or fails to materially comply with the Franchise Agreement, regardless of whether the failures were corrected. Another condition that could prevent renewal is if less than 35% of the franchisee's Gross Sales during each month in any consecutive 2-month period is generated from the repair of metal bumpers. Finally, refusal to take a drug test or failing a drug test could also prevent renewal.