What is the definition of 'Designated Area' in the context of the Bumper Man Certified Technician Addendum?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- Designated Area, so long as Franchisee's Designated Area contains a minimum of 35 Major Dealerships; or (ii) offer the opportunity for Franchisee to retain the services of a Certified Technician that satisfies Franchisor's then-current criteria for Certified Technicians and is approved by Franchisor in writing within 30 days of Franchisor's Notice of intent to modify the Designated Area. If Franchisor offers the opportunity for Franchisee to retain the services of a Certified Technician, then within 60 days following Franchisor's approval of Franchisee's Certified Technician, Franchisee and the Certified Technician will execute Franchisor's current form of Certified Technician Addendum and the Certified Technician will pay the Certified Technician Fee and complete Initial Training.
- (d) Relocation. Franchisee will not relocate the Bumper Business. However, Franchisee, with Franchisor's prior written consent, may Transfer the Bumper Business to another Person and enter into Franchisor's thencurrent Bumper Man franchise agreement for a new Designated Area provided Franchisee pays to Franchisor a fee equal to 70% of the then-current franchise fee.
- (e) Reserved Rights. Franchisor retains all rights inside and outside the Designated Area except those that are expressly granted to Franchisee in this Agreement. Without limiting Franchisor's and its Affiliate's rights described in this Section 2(e), Franchisor and its Affiliates and any other authorized Person may, among other things:
- (i) Advertise and promote the System within and outside the Designated Area;
- (ii) Operate, and license others to operate, a Bumper Business at any location outside the Designated Area, including locations that are adjacent to the Designated Area;
- (iii) Establish and operate, and license others to establish and operate, any business other than a Bumper Man business, including other automotive repair businesses, under the Marks or under other marks; and
(iv) Establish and operate and license others to establish and operate any auto repair businesses or other businesses that Franchisor or its Affiliates may operate as a result of any acquisition, consolidation or merger.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the 'Designated Area' is referenced within the context of the Certified Technician Addendum. While the document does not provide an explicit definition of 'Designated Area' within the Certified Technician Addendum, it does outline certain stipulations and restrictions related to it.
Specifically, the franchisee's ability to operate and make changes to their Bumper Business is tied to the Designated Area. For example, the franchisee cannot relocate the Bumper Business without prior written consent from Bumper Man, and even then, relocating involves entering a new franchise agreement and paying a fee equal to 70% of the then-current franchise fee.
Bumper Man retains rights both inside and outside the Designated Area, except for those rights expressly granted to the franchisee. This includes the right to advertise, operate other Bumper Man businesses outside the Designated Area (even adjacent ones), and operate other types of businesses, including competitors, under different marks. Prospective franchisees should seek clarification from Bumper Man regarding the specific boundaries, size, and demographic characteristics of their Designated Area, as well as any potential limitations or competitive factors within that area. Understanding these factors is crucial for assessing the market potential and operational scope of their Bumper Man franchise.