Who are considered 'Principal' in the Bumper Man franchise agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Principal represents and warrants that the following is a complete and accurate list of all Principals of Franchisee and a full description of the nature and extent of each Principal's Equity Interest in Franchisee. Franchisee, and Principal as to its Equity Interest, represents and warrants that Principal is the sole and exclusive legal and beneficial owner of its Equity Interest in Franchisee, free and clear of all liens, restrictions, agreements and encumbrances of any kind or nature, other than those required or permitted by this Guaranty.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, a 'Principal' is a key individual associated with the franchisee. The FDD outlines several obligations and restrictions that apply to the Principal, both during their time as a Principal and for a period of two years after they cease to be one. These obligations primarily revolve around non-competition and protecting the Bumper Man system.
Specifically, the Principal agrees not to engage in any competitive business, solicit Bumper Man customers, or perform any actions that could harm the goodwill associated with the Bumper Man brand. These restrictions are geographically limited to the United States while the individual is a Principal and extend to a 25-mile radius of any Bumper Man business for two years after they are no longer a Principal. This ensures that former Principals cannot immediately leverage their knowledge and experience to compete with Bumper Man.
The Principal also acknowledges that their agreement to these terms is a condition for Bumper Man granting the franchise. This commitment remains in force even after the Principal's death, binding their personal representatives. Furthermore, the agreement remains enforceable regardless of any changes to the names or structures of either Bumper Man or the franchisee. The Principal must provide a complete and accurate list of all Principals of the franchisee, including a full description of each Principal's equity interest, ensuring transparency and accountability.
In essence, the 'Principal' in a Bumper Man franchise is a person with significant control or ownership in the franchise, who is subject to specific obligations to protect the brand's interests. Prospective franchisees should carefully consider these obligations and ensure that all Principals understand and agree to them before entering into a franchise agreement with Bumper Man.