Where can I find a description of the conditions and obligations that define an 'Event of Default' for a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
ponsibility from Franchisee to Franchisor.
(e) Severability and Enforceability of Covenants. Each of the covenants contained in this Section 17 will be considered separate and independent from each other. If any covenant in this Agreement which restricts competitive activity is deemed unenforceable for any reason, but would be enforceable by reducing or substituting any part of it in accordance with Section 26(a), such covenant will be enforced to the fullest extent permissible under Applicable Law.
18. DEFAULT AND TERMINATION.
The occurrence of any of the following will adversely and substantially affect the interests of Franchisor and will be deemed an Event of Default constituting just cause for exercising any of the remedies set forth herein:
- (a) Franchisor may terminate this Agreement upon delivery to Franchisee of Notice as a result of the occurrence of any of the following Events of Default and Franchisee's failure to cure such Event of Default within the cure period described below, if any, and absent a cure period, immediately upon Franchisor's Notice to Franchisee:
- (i) Franchisee (or any of its Principals or Affiliates) has made any material misrepresentation or omission in connection with this Agreement;
- (ii) Franchisee fails to begin operating the Bumper Business as of the Commencement Date, and fails to cure such default within 30 days after Notice of such Event of Default is delivered to Franchisee;
- (iii) Franchisee abandons or fails actively to operate the Bumper Business for
five or more Business Days unless the Bumper Business has been closed for a purpose Franchisor has approved in writing or because of an Event of Force Majeure;
- (iv) Franchisee fails to submit invoices to Franchisor for processing for seven or more consecutive Business Days without Franchisor's prior approval;
- (v) Franchisee surrenders or transfers Control of the operation of the Business without Franchisor's prior written consent;
- (vi) Franchisee (or any of its Principals or Affiliates) is or has been held liable or convicted by a court of law, pleads or has pleaded no contest to, a felony, indictable offense or other unlawful act, engages in any dishonest or unethical conduct or otherwise engages in any act or conduct which Franchisor believes will materially and adversely affect the reputation of the Bumper Business, any other Bumper Man business or the goodwill associated with Marks;
- (vii) Franchisee's misuse or unauthorized use of the Marks, including without limitation Franchisee's misuse or unauthorized use of the Marks on its Social Media pages or other Internet site, or registration of a domain name incorporating the Marks;
- (viii) Franchisee (or any of its Principals or Affiliates) makes an unauthorized Transfer pursuant to Section 16;
- (ix) Franchisee (or any of its Principals or Affiliates) makes any unauthorized use or disclosure of any Confidential Information or Franchisor's trade secrets; or uses, duplicates or discloses any portion of the Manual in violation of this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the conditions and obligations that define an 'Event of Default' for a Bumper Man franchise can be found in Section 18, titled 'DEFAULT AND TERMINATION'. This section outlines various events that would be considered a breach of the franchise agreement, allowing Bumper Man to terminate the agreement.
Specifically, the FDD details several scenarios that constitute an Event of Default. These include making material misrepresentations or omissions in connection with the agreement, failing to begin operating the Bumper Business by the Commencement Date, abandoning the business for five or more business days without approval, failing to submit invoices for processing for seven or more consecutive business days without approval, and surrendering control of the business without written consent.
Additionally, an Event of Default can occur if the franchisee or its principals are convicted of a felony or engage in dishonest or unethical conduct that harms the reputation of the Bumper Man business. Misuse of the Bumper Man trademarks, unauthorized transfers of the franchise, and failure to comply with any material provision of the agreement within 30 days of notice also constitute default events. The franchise agreement will also terminate immediately upon delivery of notice to the franchisee if the franchisee fails on three or more separate occasions within any period of 12 consecutive months to submit reports, pay amounts due, or otherwise materially comply with the agreement.
These conditions are typical in franchise agreements, as they protect the franchisor's brand and ensure franchisees operate according to established standards. Prospective Bumper Man franchisees should carefully review Section 18 to understand their obligations and the potential consequences of failing to meet them.