Is failure to comply with representations a cause for termination of the Bumper Man franchise agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
as law applies (subject to state law) | | Provision | Section in Franchise | Summary | | | Agreement | | |------------------------------------------------------|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Business without our prior written consent; you | | | | or your principals or affiliates being held liable | | | | or convicted of a felony, indictable offense or | | | | other unlawful act or you or your principals or | | | | affiliates engaging in any dishonest or unethical | | | | conduct or act that may materially or adversely | | | | affect the brand, System or goodwill associated | | | | with the Marks; any unauthorized use or misuse | | | | of the Marks; any unauthorized transfer under | | | | Section 16 by you or any of your principals or | | | | affiliates; any unauthorized disclosure or use of | | | | our confidential information (including without | | | | limitation the Manual); any failure by you, your | | | | principals or your operator to comply with the | | | | representations, warranties and covenants set | | | | forth in the Franchise Agreement; termination by | | | | us or our affiliates of any other agreement with | | | | you or your affiliates; failure to pay any taxes | | | | applicable to the Bumper Business and its | | | | operations; failure to comply with applicable | | | | law; loss or revocation of any license or permit | | | | required to operate the Bumper Business; if, on | | | | three or more occasions in any 12-month period, | | | | you fail to submit when due reports or other | | | | information | | | | required | | | | under | | | | the | | | | Franchise | | | | Agreement, fail to pay when due any amounts | | | | due to us or our affiliates or fail to materially | | | | comply | | | | with | | | | the | | | | Franchise | | | | Agreement, | | | | regardless | | | | of | | | | whether | | | | you | | | | corrected | | | | such | | | | failures; less than 35% of your Gross Sales | | | | during each month in any consecutive 2-month | | | | period is generated from the repair of metal | | | | bumpers; and you or a principal refuses to take a | | | | drug test we request (if applicable law permits us | | | | to request that you or your principal take a drug | | | | test) or fail any drug test so taken | | i. Your obligations on termination/non-renewal | Section 19 | Obligations include ceasing operation of your Bumper Business; payment of all amounts owed to us; discontinuing the use of all Marks;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, failure to comply with the representations, warranties, and covenants outlined in the Franchise Agreement can lead to termination of the agreement. This means that if a franchisee does not meet the standards or promises made within the agreement, Bumper Man has grounds to terminate the franchise.
Several other actions or inactions can also trigger termination. These include conducting business without prior written consent, involvement of the franchisee or its principals in unlawful or unethical activities that harm the Bumper Man brand, unauthorized use of the brand's trademarks, unauthorized transfer of the franchise, and unauthorized disclosure of confidential information. Furthermore, failure to pay applicable taxes, comply with the law, or maintain necessary licenses can also result in termination.
Additionally, Bumper Man can terminate the franchise if, on three or more occasions within a 12-month period, the franchisee fails to submit required reports, make payments when due, or materially comply with the Franchise Agreement, regardless of whether the franchisee corrects these failures. Another cause for termination is if less than 35% of the franchisee's gross sales during each month in any consecutive 2-month period is generated from the repair of metal bumpers. Finally, refusal to take a drug test (if permitted by law) or failing a drug test can also lead to termination.
These termination clauses highlight the importance of franchisees adhering to all aspects of the Franchise Agreement to maintain their franchise rights with Bumper Man. Prospective franchisees should carefully review the Franchise Agreement to fully understand their obligations and the potential consequences of non-compliance.