Is the covenant not to compete in the Bumper Man Franchise Agreement, which extends beyond termination, always enforceable under California law?

According to the 2025 Bumper Man Franchise Disclosure Document, the enforceability of the covenant not to compete, which extends beyond the termination of the agreement, is not guaranteed under California law. Specifically, Item 22 of the FDD notes that if any provision within the Franchise Agreement is inconsistent with California law, the law will take precedence. This means that while Bumper Man includes a post-term non-compete clause in its agreement, California courts may not uphold it.

For a prospective Bumper Man franchisee in California, this has significant implications. Non-compete agreements are designed to prevent franchisees from immediately opening a competing business or working for a competitor after their franchise agreement ends, thus protecting the franchisor's market and proprietary information. However, California law is generally less favorable towards these types of restrictions, especially those that limit a person's ability to work. Therefore, a Bumper Man franchisee might find that the non-compete clause is not fully enforceable, allowing them more freedom to operate in a similar business after the franchise term, compared to franchisees in other states with different laws.

It is important for potential franchisees to seek legal counsel to fully understand the implications of this clause within the context of California law. Consulting with an attorney can provide clarity on the specific circumstances under which the non-compete might be challenged or upheld. This due diligence is crucial for anyone considering investing in a Bumper Man franchise in California, as it can affect their future business opportunities after the franchise agreement concludes.