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What is the effect of not satisfying the conditions in Section 3 of the Certified Technician Addendum 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.
(b)
The proposed Certified Technician: (1) has sufficient business experience, aptitude,
assets and financial resources to operate the Bumper Business; (2) meets Franchisor's
then-applicable standards for Bumper Business franchisees set forth in the Manual; (3)
and each of the Persons holding a direct or indirect Equity Interest in Certified
Technician (if Certified Technician is an Entity) is not engaged and will not engage in the
operation or ownership of a business offering bumper repair services or any competitor of
Bumper Man, and will engage only in the operation of the Bumper Business; and (4) will
cooperate with reasonable due diligence requests made by Franchisor promptly thereafter
and if additional time is reasonably needed, then prior to the proposed Commencement
Date.

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

What This Means (2025 FDD)

According to the 2025 Bumper Man Franchise Disclosure Document, Section 3 of the Certified Technician Addendum outlines the conditions that must be met for a Certified Technician to be approved. These conditions include requirements for both the franchisee and the technician. The franchisee must be current on all payments and in full compliance with the Franchise Agreement. The technician must meet Bumper Man's standards for franchisees, have sufficient business experience and financial resources, and not be involved with any competing businesses.

If these conditions outlined in Section 3 are not satisfied prior to or concurrently with the proposed Commencement Date, Bumper Man will not grant the Certified Technician the right to perform services within the Designated Area. This means the technician cannot operate under the Bumper Man franchise.

For a prospective Bumper Man franchisee, this highlights the importance of ensuring that any potential Certified Technician meets all of the franchisor's requirements. Failure to do so will prevent the technician from being approved, which could impact the franchisee's ability to maximize customer service within their designated area. Franchisees should carefully review Section 3 of the Certified Technician Addendum and work closely with Bumper Man to ensure all conditions are met to avoid any delays or disapproval of their chosen technician.

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.