What is the consequence of an unauthorized transfer by a Bumper Man franchisee (or any of its Principals or Affiliates) pursuant to Section 16?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (viii) Franchisee (or any of its Principals or Affiliates) makes an unauthorized Transfer pursuant to Section 16;
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:
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, an unauthorized transfer by a franchisee (or any of its Principals or Affiliates) pursuant to Section 16 constitutes an Event of Default. This event allows Bumper Man to terminate the Franchise Agreement with the franchisee upon delivery of notice.
An Event of Default means that the franchisee has failed to meet their obligations as outlined in the Franchise Agreement. In this specific case, the unauthorized transfer is considered a serious breach that gives Bumper Man the right to end the agreement. This could result in the franchisee losing their rights to operate the Bumper Man business and potentially facing other penalties as specified in the agreement.
This provision underscores the importance of obtaining prior written consent from Bumper Man before transferring any ownership or control of the franchise. Franchisees must adhere to the procedures and conditions outlined in Section 16 of the Franchise Agreement to avoid triggering an Event of Default and potential termination of their franchise.