Is engaging in dishonest or unethical conduct by a Bumper Man franchisee a cause for termination?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the franchise | Section 17(a) | You and your principals will not divert any business or customer to a competitor, perform directly or indirectly any act injurious or prejudicial to the goodwill of the Marks and System, and you will not 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. |
| r. Non-competition covenants after the franchise is terminated or expires | Section 17(a) | For the two-year period following termination or expiration of the Franchise Agreement (and, with respect to your principals, for the two year period following the date upon which your principal ceases being a "principal" as defined in the Franchise Agreement), you and your principals will not divert any business or customer to a competitor, do or perform any act injurious to or prejudicial to the goodwill of the Marks and the System, or 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 (i) within the Designated Area defined in your Franchise Agreement; or (ii) at or within 25 miles of any Bumper Business. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2025 FDD)
Based on the 2025 Bumper Man Franchise Disclosure Document, while the specific phrase "dishonest or unethical conduct" is not explicitly listed as a cause for termination, there are clauses that address similar concepts. Specifically, franchisees and their principals must not perform any act that is injurious or prejudicial to the goodwill of the Marks and System. This could be interpreted to include certain types of dishonest or unethical behavior that harms the brand's reputation.
Additionally, the Franchise Agreement includes non-competition covenants that, if violated, could lead to termination. These covenants prevent franchisees and their principals from diverting business to competitors or engaging in any activity that harms the Bumper Man system. Dishonest or unethical actions that violate these covenants could potentially be grounds for termination.
It is important for prospective Bumper Man franchisees to carefully review Section 17(a) of the Franchise Agreement, as referenced in the provided table, to fully understand the scope of these restrictions and the potential consequences of non-compliance. Franchisees should also seek legal counsel to clarify any ambiguities and ensure they understand their obligations under the agreement.