What is the definition of 'Equity Interest' in relation to a Bumper Man franchise?

Based on the 2025 Bumper Man Franchise Disclosure Document, the term 'Equity Interest' is used in the context of identifying individuals or entities that hold a direct or indirect ownership stake in the franchisee. Specifically, Bumper Man requires franchisees to disclose all Principals holding any Equity Interests in the franchisee company. This information is crucial for Bumper Man to assess the ownership structure and ensure transparency within its franchise network.

Furthermore, each Principal, defined as someone holding an Equity Interest, is required to execute a Guaranty and Undertaking of Obligations. This legal document holds the Principal personally liable for the franchisee's obligations under the Franchise Agreement. This requirement extends not only to the franchisee but also to any spouse or relative authorized by Bumper Man to perform obligations related to the Bumper Business.

The FDD also stipulates that the Principal must provide a complete and accurate list of all Principals of the franchisee, along with a full description of the nature and extent of each Principal's Equity Interest. The franchisee and the Principal warrant that the Principal is the sole and exclusive legal and beneficial owner of their Equity Interest, free from any liens, restrictions, or encumbrances, except as permitted by the Guaranty. This ensures that Bumper Man has a clear understanding of who controls and benefits from the franchise, and that those individuals are fully committed to upholding the franchise agreement.