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What is the effect of the Franchisee not being in full compliance with the Franchise Agreement on the approval of the Certified Technician for a Bumper Man franchise?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

This Certified Technician Addendum to Bumper Man Franchise Agreement ("Addendum") is effective as of, 20 (the "Effective Date") by and among Bumper Man, Inc. ("Franchisor"), and ("Franchisee"), ("Principal") and ("Certified Technician"). Franchisor, Franchisee, Principal and Certified Technician are collectively referred to as "Parties" in this Addendum.
1.
INTRODUCTION. Franchisor and Franchisee are parties to the Bumper Man Franchise
Agreement dated, 20 (the "Franchise Agreement") pursuant to which Franchisee
operates
a
Bumper
Man
bumper
repair
business
at
("Bumper Business").
Franchisee has
requested Franchisor's consent to retain the services of a Certified Technician to perform
services within the Designated Area on, 20 ("Commencement Date") to maximize
the number of customers serviced by the Bumper Business.
2.
DEFINITIONS.
All capitalized terms used herein but not defined shall have the
meaning given to such terms in the Franchise Agreement.
3.
CONDITIONS FOR APPROVAL. Franchisor will grant the limited right to Certified
Technician to perform the services in the Designated Area during the Term of the Franchise
Agreement (unless terminated in accordance with Section 18), as further set forth in Section 4 of
this Addendum, subject to Franchisee's and Certified Technician's satisfaction of the conditions
set forth in this Section 3 prior to or concurrently with the proposed Commencement Date:
(a)
Franchisee and its Principals have paid all Continuing Service Fees and all other amounts
owed to Franchisor and its Affiliates, submitted all required Reports and other statements
and data and otherwise are in full compliance with this Agreement as of the date of
Franchisee's
request
for
approval
of
the
Certified
Technician
and
as
of
the
Commencement Date.

Source: Item 23 — RECEIPTS (FDD pages 45–180)

What This Means (2025 FDD)

According to the 2025 Bumper Man Franchise Disclosure Document, a franchisee's compliance with the Franchise Agreement is a prerequisite for the approval of a Certified Technician. Specifically, the FDD states that Bumper Man will only grant the right to a Certified Technician to perform services if the franchisee and its principals have met certain conditions. These conditions include having paid all required fees, submitted all necessary reports and data, and otherwise being in full compliance with the Franchise Agreement both at the time of requesting approval for the Certified Technician and on the Commencement Date.

This requirement means that if a Bumper Man franchisee is not current on their payments, has failed to submit required reports, or is otherwise in breach of the Franchise Agreement, Bumper Man will not approve their request to use a Certified Technician. This could significantly impact the franchisee's ability to maximize customer service and grow their business, as the Certified Technician is intended to increase the number of customers that the Bumper Business can serve.

For a prospective Bumper Man franchisee, this highlights the importance of maintaining full compliance with all aspects of the Franchise Agreement. Failure to do so can have tangible operational consequences, such as being unable to utilize a Certified Technician to expand service capacity. This clause incentivizes franchisees to adhere strictly to the terms of the agreement to avoid hindering their business operations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.