Does the definition of 'Consequential Damages' for a Bumper Man franchise include compensation for damages to reputation and goodwill?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (p) "Consequential Damages" means damages and injury that result from a Party's negligent performance of or other breach of this Agreement for: (a) lost profits; or (b) compensation for damages to reputation and goodwill including costs of or resulting from delays, financing, marketing materials and media time and space, and costs of changing, substituting or replacing the same.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the definition of "Consequential Damages" does include compensation for damages to reputation and goodwill. Specifically, the FDD states that consequential damages can arise from a party's negligent performance or breach of the agreement.
This definition extends to encompass not only lost profits but also compensation for damages to the Bumper Man franchisee's reputation and goodwill. This includes costs related to delays, financing, marketing materials, media time and space, and the expenses associated with changing, substituting, or replacing these elements.
For a prospective Bumper Man franchisee, this definition is important because it clarifies the scope of potential liabilities and damages that may arise from breaches of the franchise agreement. It indicates that Bumper Man recognizes the value of a franchisee's reputation and goodwill and considers damages to these assets as a legitimate component of consequential damages in the event of a breach.