Is a felony conviction of a Bumper Man franchisee a cause for termination?
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;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a felony conviction can be grounds for termination of the franchise agreement. Specifically, if a franchisee, their principals, or affiliates are held liable or convicted of a felony, indictable offense, or other unlawful act, Bumper Man has the right to terminate the agreement. This also extends to dishonest or unethical conduct that may materially or adversely affect the brand, system, or goodwill associated with the Marks.
This provision protects Bumper Man's brand and reputation by ensuring that franchisees and their associated parties maintain a certain standard of legal and ethical behavior. The inclusion of affiliates and principals broadens the scope of this clause, holding the franchisee accountable for the actions of those closely related to the business.
For a prospective Bumper Man franchisee, this means that maintaining a clean legal record is crucial. Any past or future felony convictions or unethical behavior could jeopardize their franchise agreement. This clause is fairly standard in franchise agreements, as franchisors need to protect their brand from damage caused by franchisee misconduct. Franchisees should carefully review this section and understand the implications before signing the agreement.