What constitutes 'dishonest conduct' that could adversely affect the reputation of the Bumper Man business?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (vi) Franchisee (or any of its Principals or Affiliates) is or has been held liable or convicted by a court of law, pleads or has pleaded no contest to, a felony, indictable offense or other unlawful act, engages in any dishonest or unethical conduct or otherwise engages in any act or conduct which Franchisor believes will materially and adversely affect the reputation of the Bumper Business, any other Bumper Man business or the goodwill associated with Marks;
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, engaging in any dishonest or unethical conduct or any act or conduct that Bumper Man believes will materially and adversely affect the reputation of the Bumper Man business, any other Bumper Man business, or the goodwill associated with its marks can be considered a default. This is significant because such an event of default allows Bumper Man to terminate the Franchise Agreement with the franchisee.
This clause gives Bumper Man broad discretion to determine what constitutes 'dishonest or unethical conduct' or any act that could harm the brand's reputation. It is not limited to illegal actions, but extends to any behavior Bumper Man deems detrimental. This could include actions by the franchisee, their principals, or affiliates.
For a prospective franchisee, this means that their actions, and the actions of those associated with them, are subject to scrutiny by Bumper Man. It is crucial to maintain high ethical standards and avoid any behavior that could be perceived negatively. Franchisees should seek clarification from Bumper Man regarding specific activities that could be considered 'dishonest or unethical conduct' to avoid potential default and termination of their agreement.