What constitutes 'Control' of the operation of the Bumper Man Business, as it relates to prohibited transfers?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Business, the Operating Assets or any Equity Interest, directly or indirectly, in Franchisee to any Person or any other transaction that would, alone or together with other previous, simultaneous or proposed Transfer, have the effect of transferring Control of Franchisee, this Agreement, or substantially all of the assets of the business operated pursuant to this Agreement. Any transfer of an Equity Interest in Franchisee or the ownership, possession, or Control of the Bumper Business may be made only in conjunction with a Transfer of this Agreement.
(ttt) "Transfer Fee" means the transfer fee Franchisee must pay to Franchisor as set forth in Section 16 and in an amount equal to 20% of the purchase price of the Bumper Business set forth in the asset purchase agreement between Franchisee and the transferee.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, 'Control' of the operation is implicated in any transfer of the Bumper Business, its Operating Assets, or any Equity Interest in the Franchisee. This extends to any transaction that, alone or with other transfers, would effectively transfer control of the Franchisee, the Franchise Agreement itself, or substantially all assets of the business.
In practical terms, this means a Bumper Man franchisee cannot transfer ownership or operational authority to another party without the franchisor's explicit consent. This restriction ensures that the franchisor maintains oversight and can approve any new operators to protect brand standards and consistency across all franchise locations. The FDD stipulates that any transfer of equity interest or control of the Bumper Business can only occur in conjunction with a transfer of the Franchise Agreement, reinforcing the franchisor's control over who operates a Bumper Man franchise.
This clause is typical in franchising, as franchisors need to maintain standards and protect their brand. For a prospective Bumper Man franchisee, this means understanding that exiting the business involves more than just selling; it requires franchisor approval of the buyer and adherence to specific transfer conditions. This includes the payment of a transfer fee equal to 20% of the purchase price.