What is the duration of the non-compete covenant for a Principal of a Bumper Man franchisee after they cease to be a Principal?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
se of any claims, none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the Term.
Principal waives all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the undersigned's execution of and performance under this Guaranty.
This Guaranty and all claims arising from, under or with respect to the relationship between Franchisor and Principal(s) will be interpreted, enforced and governed by the laws of Texas (without regard to Texas conflicts of law rules).
For so long as you are Franchisee's Principal under the Franchise Agreement and for a period of two years from the date you cease to be Franchisee's Principal, you will not, either directly or indirectly, individually or through, on behalf of, or in conjunction with any other person:
- (i) Own, maintain, operate, be employed by, engage in, franchise, lease property to, advise, help, make loans to, or have any interest in, either directly or indirectly, any Competitive Business;
- (ii) Divert or attempt to divert any actual or prospective business or customer of the Bumper Business to any Competitive Business, by direct or indirect inducement or otherwise;
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a Principal of a Bumper Man franchise is subject to a non-compete covenant for a period of two years after they cease to be a Principal. During this two-year period, the Principal is restricted from engaging in any Competitive Business, either directly or indirectly. This includes owning, operating, being employed by, engaging in, franchising, leasing property to, advising, helping, making loans to, or having any interest in a Competitive Business.
The restrictions apply within the United States while the individual is a Principal. After ceasing to be a Principal, the non-compete applies within 25 miles of the Designated Area and any other Bumper Man business, unless otherwise approved in writing by Bumper Man. These restrictions are designed to protect Bumper Man's brand, Marks, Confidential Information, and System.
It's important to note that if any part of these restrictions is found to be unreasonable in time or distance, a court may reduce the time or distance to what is deemed reasonable. Additionally, any period of non-compliance with these obligations will not be credited toward satisfying the two-year non-compete period. This means that if a Principal violates the non-compete agreement, the two-year clock may be paused or reset, ensuring Bumper Man's interests are protected.