How is the Designated Area for a Bumper Man franchise defined?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
usiness. 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.
3. TERM OF FRANCHISE.
- (a) Initial Term. The Initial Term will commence on the Effective Date of this Agreement and expire five years thereafter, unless this Agreement is terminated as provided in Section 18.
- (b) Renewal Term.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, a franchisee must operate their Bumper Business within a specific Designated Area. This area is formally identified in Exhibit D of the franchise agreement, which is incorporated into the agreement upon execution by both parties.
Bumper Man grants the franchisee the right and license to operate within this Designated Area, and generally, neither Bumper Man nor its affiliates will operate or authorize another party to operate a Bumper Business within that area during the term of the agreement, ensuring a degree of exclusivity. This exclusivity is subject to the franchisee's full compliance with the franchise agreement and any other agreements with Bumper Man.
However, this exclusivity is not absolute. Bumper Man retains rights both inside and outside the Designated Area, including the right to advertise and promote the Bumper Man system, operate or license others to operate a Bumper Business outside the Designated Area (even adjacent locations), and operate other businesses (including automotive repair) under different marks. Furthermore, if the demographics within the Designated Area change significantly, Bumper Man may reduce the size of the Designated Area or offer the franchisee the opportunity to retain a certified technician to adequately service the area.