What conditions must be met for the Bumper Man franchisor to approve a transfer of the franchise agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
securities; or undertake a refinancing, recapitalization, leveraged buy-out or other economic or financial restructuring; provided that the new owner of Franchisor or the surviving Entity will assume all of Franchisor's obligations hereunder. Franchisor may take or perform any such actions without liability or obligation to Franchisee and Franchisee expressly waives any claims, demands or damages arising from or related to any or all of the above actions or variations thereof.
- (b) Transfer by Franchisee. The rights and duties created by this Agreement are personal to Franchisee, and Franchisor has granted rights under this Agreement in reliance upon the business skill, financial capacity and personal character of Franchisee and its Principals. Accordingly, no Transfer is permitted or authorized without Franchisor's prior written approval, subject to the conditions below.
- (c) Franchisor Assistance Program. If Franchisee so requests, Franchisor may, but is not obligated to, assist Franchisee in the resale of the Bumper Business to another party.
- (d) Conditions for Approval of Transfer. If the proposed Transfer by Franchisee is of this Agreement, Control of Franchisee or substantially all of Franchisee's assets, or is one of a series of Transfers (regardless of the time period over which such Transfers occur) which in the aggregate constitute the Transfer of this Agreement or Control of Franchisee, and if Franchisor has not exercised its right of first refusal under Section 16(g), Franchisor will approve a Transfer
only if the conditions set forth in this Section 16(d), as may be amended by Franchisor from time to time, are met prior to or concurrently with the proposed effective date of the Transfer:
- (i) Franchisee and its Principals have paid all Continuing Service Fees and all other amounts owed to Franchisor and its Affiliates, submitted all required Reports and other statements and data and otherwise are in full compliance with this Agreement as of the date of Franchisee's request for approval of the Transfer and as of the effective date of the Transfer.
- (ii) The proposed transferee (and its direct and indirect owners): (1) have sufficient business experience, aptitude , assets and financial resources to operate the Bumper Business; (2) are individuals that meet Franchisor's then-applicable Standards for Bumper Business franchisees; (3) are not engaged and will not engage in the operation or ownership of a Competitive Business, and will engage only in the operation of the Bumper Business; and (4) will cooperate with reasonable due diligence requests made by Franchisor promptly thereafter and if additional time is reasonably needed, then prior to the proposed effective date of the Transfer.
- (iii) The transferee and its owners as specified by Franchisor will complete the Initial Training.
- (iv) The transferee and each of its owners specified by Franchisor will agree to be bound by all of the terms and conditions of Franchisor's then-current form of franchise agreement and sign the ancillary agreements and documents Franchisor requires for franchisees and any principal.
- (v) Franchisee and the transferee and its owners have agreed to and delivered to Franchisor the material terms and conditions that will comprise the purchase and sale agreement for the Operating Assets and all other assets to be included in the sale of the Bumper Business.
- (vi) Franchisee or the transferee pays to Franchisor a Transfer Fee in
connection with the Transfer which includes the fee for Initial Training as required above.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a franchisee can transfer their franchise agreement if certain conditions are met, as outlined in Section 16(d). These conditions must be satisfied before or at the same time as the proposed transfer date.
First, the franchisee and their principals must be current on all payments, including Continuing Service Fees, and must have submitted all required reports and data, ensuring they are in full compliance with the existing agreement. Second, the proposed transferee and their owners must demonstrate sufficient business experience, aptitude, assets, and financial resources to successfully operate the Bumper Business. They must also meet Bumper Man's standards for franchisees and not be involved in any competitive businesses, committing solely to the Bumper Business. The transferee must cooperate with any due diligence requests from Bumper Man.
Additionally, the transferee and their specified owners must complete the initial training program. They must also agree to adhere to the terms of Bumper Man's current franchise agreement and sign any necessary ancillary documents. The franchisee and transferee must provide Bumper Man with the material terms of the purchase and sale agreement for the operating assets. Finally, either the franchisee or the transferee must pay a transfer fee to Bumper Man, which includes the cost of the initial training. These conditions ensure that any transfer maintains the standards and integrity of the Bumper Man franchise system.