What are the consequences for a Bumper Man franchisee's unauthorized use of confidential information?

According to the 2025 Bumper Man Franchise Disclosure Document, a franchisee's unauthorized use or disclosure of confidential information or trade secrets, or using, duplicating, or disclosing any portion of the Manual in violation of the agreement, can lead to termination of the franchise agreement. This applies not only to the franchisee but also to their Principals or Affiliates. Confidential information includes, but is not limited to, the Standards, the Manual, services, products, designs, devices, tools, specifications, procedures, techniques not in the public domain, pricing, technology, point of sale, computer software, advertising, marketing and promotional programs, customer data, financial data and statements, training and operational methodology content, and any other proprietary or confidential information of Bumper Man or its Affiliates.

Bumper Man considers such unauthorized actions a material breach of the franchise agreement, giving them grounds for immediate termination. This is a significant risk for franchisees, as it means that any mishandling or misuse of sensitive information, whether intentional or unintentional, could result in the loss of their franchise. The FDD emphasizes that all confidential information remains the sole property of Bumper Man, and upon termination of the agreement, franchisees must immediately return all copies of such information.

This provision is fairly standard in franchising, as franchisors need to protect their proprietary systems and trade secrets. Prospective Bumper Man franchisees should carefully review the definition of "Confidential Information" in the franchise agreement and establish strict protocols for handling such information to avoid inadvertent breaches. They should also ensure that all employees, agents, and representatives who have access to confidential information are aware of these obligations and the potential consequences of unauthorized use or disclosure.