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Is financial inability considered a 'Force Majeure Event' for a Bumper Man franchise?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

In no event will Franchisee's inability to pay amounts due under this Agreement constitute a Force Majeure Event and no Force Majeure Event will operate to excuse Franchisee from the prompt payment of Continuing Service Fees, or any other fee or payment due to Franchisor pursuant to this Agreement.

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

What This Means (2025 FDD)

According to the 2025 Bumper Man Franchise Disclosure Document, a franchisee's inability to pay amounts due under the Franchise Agreement does not constitute a Force Majeure Event. This means that even if unforeseen circumstances impact a franchisee's financial situation, they are still obligated to meet their financial obligations to Bumper Man.

This is a significant point for prospective franchisees to consider. Force Majeure events typically cover extraordinary circumstances such as natural disasters, war, or government regulations that make it impossible to fulfill contractual obligations. However, Bumper Man explicitly excludes financial inability from this definition, placing the onus on the franchisee to manage their finances effectively, regardless of external challenges.

Furthermore, the FDD states that no Force Majeure Event will excuse a franchisee from the prompt payment of Continuing Service Fees, or any other fee or payment due to Franchisor. This underscores the importance of having a solid financial plan and sufficient capital reserves when investing in a Bumper Man franchise. Franchisees should carefully assess their financial capacity and consider potential risks before entering into the agreement, as financial difficulties will not be considered a valid reason for non-payment.

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.