Can Bumper Man establish or license auto repair businesses resulting from acquisitions, consolidations, or mergers?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
e Agreement and the Manual.
We will not, except as provided below, and as long as you are in full compliance with the Franchise Agreement, establish and operate or license or authorize any other party to establish or operate a Bumper Business within the Designated Area for the term of the Franchise Agreement. Except as expressly limited by the previous sentence, we and our affiliates retain all rights with respect to Bumper Businesses, the Marks, the sale of similar or dissimilar products and services and any other activities we deem appropriate whenever and wherever we desire. Specifically, we and our affiliates reserve the following rights:
- (1) Advertise and promote the Bumper Man system within and outside the Designated Area;
- (2) 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;
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man retains the right to establish or license auto repair businesses resulting from acquisitions, consolidations, or mergers. Specifically, Bumper Man and its affiliates reserve the right to establish and operate and license others to establish and operate any auto repair businesses or other businesses that Bumper Man or its Affiliates may operate as a result of any acquisition, consolidation, or merger. This means that even within a franchisee's designated area, Bumper Man could potentially introduce competing auto repair services if they acquire, consolidate, or merge with another business.
This clause is important for prospective franchisees to consider, as it clarifies that the protected territory is limited to Bumper Man businesses operating under the Bumper Man brand. Bumper Man retains considerable freedom to expand into the automotive repair market through other avenues, even if those avenues compete with existing franchisees. This is a fairly common practice in franchising, where franchisors often reserve rights to pursue various business opportunities, but it does introduce a potential risk of increased competition for franchisees.
It is important to note that the FDD also states that Bumper Man will not operate or grant others the right to operate a Bumper Man repair services business in the Designated Area during the term of the Franchise Agreement, subject to certain rights reserved to them. This provides some territorial protection for the franchisee, but it is limited to the Bumper Man brand itself and does not prevent competition from other businesses that Bumper Man may acquire or create through mergers and consolidations.