Where can I find the description of the 'Designated Area' for my Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Grant. Subject to the reserved rights described in Section 2(e), Franchisor grants to Franchisee, upon the terms and conditions in this Agreement, the right and license, and Franchisee hereby accepts the right and obligation, to operate a Bumper Business within the Designated Area.
- (b) Designated Area. Franchisee must operate the Bumper Business within the Designated Area. Upon the Parties' execution of Exhibit D identifying Franchisee's Designated Area it will be deemed incorporated herein. Except as otherwise provided in this Agreement, and subject to Franchisee's full compliance with this Agreement and any other agreement between Franchisee or any of its Affiliates and Franchisor or any of its Affiliates, neither Franchisor nor any Affiliate will operate, or authorize any Person other than Franchisee to operate a Bumper Business in the Designated Area during the Term.
- (c) Designated Area Limited Exclusivity. If the demographics substantially change within Franchisee's Designated Area, and Franchisor determines that the Designated Area may no longer be adequately serviced in accordance with the Standards by a single Bumper Man franchisee, Franchisor, in its reasonable business judgment, may: (i) reduce the size of the
- Designated Area, so long as Franchisee's Designated Area contains a minimum of 35 Major Dealerships; or (ii) offer the opportunity for Franchisee to retain the services of a Certified Technician that satisfies Franchisor's then-current criteria for Certified Technicians and is approved by Franchisor in writing within 30 days of Franchisor's Notice of intent to modify the Designated Area. If Franchisor offers the opportunity for Franchisee to retain the services of a Certified Technician, then within 60 days following Franchisor's approval of Franchisee's Certified Technician, Franchisee and the Certified Technician will execute Franchisor's current form of Certified Technician Addendum and the Certified Technician will pay the Certified Technician Fee and complete Initial Training.
- (d) Relocation. Franchisee will not relocate the Bumper Business. However, Franchisee, with Franchisor's prior written consent, may Transfer the Bumper Business to another Person and enter into Franchisor's thencurrent Bumper Man franchise agreement for a new Designated Area provided Franchisee pays to Franchisor a fee equal to 70% of the then-current franchise fee.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the description of the franchisee's designated area is found in Exhibit D, which is incorporated into the franchise agreement upon execution by both parties. The franchisee is required to operate the Bumper Man business within this designated area.
Bumper Man grants the franchisee the right and license to operate within the designated area, subject to certain reserved rights. This means that while the franchisee has the primary right to operate in the area, Bumper Man retains certain rights, as detailed in Section 2(e) of the franchise agreement. These reserved rights allow Bumper Man to engage in activities such as advertising, operating other businesses outside the designated area, and establishing other auto repair businesses under different marks.
However, this exclusivity is limited. If the demographics within the designated area change substantially, Bumper Man may reduce the size of the designated area or offer the franchisee the opportunity to retain a certified technician. If Bumper Man offers the technician option, the franchisee has 60 days to execute a Certified Technician Addendum and ensure the technician pays the required fee and completes initial training. This highlights the importance of understanding the demographic and market conditions of the designated area and the potential for changes that could affect the franchisee's business.
It's important to note that the franchisee cannot relocate the Bumper Man business without prior written consent from Bumper Man. If the franchisee wishes to transfer the business to another person and enter into a new franchise agreement for a different designated area, they must pay Bumper Man a fee equal to 70% of the then-current franchise fee. This condition underscores the importance of carefully selecting the initial location and understanding the terms of the franchise agreement regarding relocation and transfer.