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We offer qualified applicants who satisfy our financial, business experience and related criteria for new Bumper Man franchisees, a franchise agreement to operate a Bumper Man bumper repair service. Each franchisee works alone and independently within a territory we designate. If the designated territory satisfies our criteria for a certified technician (e.g. number of Major Dealerships (as defined below), geographic size of the territory), we may grant you the right to retain the services of a certified technician to provide bumper repair and refinishing services to Bumper Man customers within your designated territory, provided you and the certified technician sign our then-current form of certified technician addendum to the franchise agreement and the certified technician satisfies our then-current training requirements to our satisfaction and pays the required fees to become a certified technician. If you utilize the services of a certified technician, you are solely responsible for the services performed by your certified technician.

A franchise applicant may be an individual, corporation, partnership, or other form of legal entity. However, if a franchisee applicant is an individual, we recommend you form a legal business entity to act as franchisee. Such individual franchisee applicant must have the sole authority to direct the day-to-day operations of the Bumper Business and hold majority voting rights ("Controlling Interest") in the franchisee entity. When you form the franchise entity, you and we will enter into a transfer agreement for the convenience of ownership transferring ownership of the franchise to the franchisee entity and you will be required to personally guaranty the obligations of the franchise entity.

The franchisee will perform the bumper repair and refinishing services at the customer's place of business, working from an approved vehicle which contains all the necessary tools. The Bumper Business will repair all types of bent, twisted, or dented bumpers but will emphasize repairing bumpers of automobiles, pick-up trucks, vans, and sports utility vehicles. At present, the Bumper Business does not carry parts, re-chrome or sell new or refurbished bumpers. Occasionally, a franchisee may replace a bumper at a customer's request.

We provide a complete tool equipment package for the Bumper Man franchisee to start business during training. A portion of the initial franchise fee is applied to the cost of the initial set of tools and supplies that we will loan to you. We may, at our option, provide template invoices and business cards and sample marketing materials. In addition, we provide invoicing and collections services that relieve you of much of the administrative and recordkeeping burdens typical of small businesses. Because running a Bumper Business has minimal administrative requirements that do not require

separate operating space, you may establish a home office. Generally, a Bumper Business is conducted primarily out of the approved vehicle.

Other Lines of Business; Affiliates.

We are not engaged in any other business and do not have any affiliates.

Competition.

Bumper Man franchisees generally compete with mobile auto repair services that offer bumper repair services as part of the suite of services provided.

Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)