Where can I find the grounds for termination of the Bumper Man Franchise Agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Term. The term of this Addendum will commence on the Effective Date of this Addendum and will expire two years thereafter, unless this Addendum or the Franchise Agreement is terminated as provided in Section 18 of the Franchise Agreement. For the sake of clarity, this Addendum will terminate immediately upon the expiration, termination or Transfer of the Franchise Agreement. The grounds for termination of the Franchise Agreement appear in Exhibit C.
- (d) Termination for Insolvency.
This Agreement will automatically terminate upon any of the following: if any bankruptcy proceeding is commenced by or against Franchisee (or any
Affiliate or Principal), the Franchisee makes an assignment for the benefit of creditors or admits in writing its insolvency or inability to pay its debts generally as they become due; Franchisee consents to the appointment of a receiver, trustee or liquidator of all or the substantial part of its property; the Bumper Business or Operating Assets is attached, seized, subjected to a writ or distress warrant or levied upon, unless such attachment, seizure, writ, warrant or levy is vacated within 30 days after Notice from Franchisor; or any order appointing a receiver, trustee or liquidator of Franchisee or the Bumper Business is not vacated within 30 days following the entry of such order. Without limiting the foregoing, Franchisee may request that Franchisor reinstate this Agreement following the entry of an order of bankruptcy discharge from a court of competent jurisdiction, which Franchisor may grant or deny at its sole option and, if granted, Franchisor may require Franchisee to sign Franchisor's then-current form of franchise agreement in lieu of reinstatement of this Agreement.
(e) Termination for Violation of Applicable Law. This Agreement will terminate immediately upon delivery of Notice to Franchisee if Franchisee (or any of its Principals or Affiliates) violates any Applicable Law or has any necessary license or certification) revoked or suspended in whole or in part, including without limitation, suspension or revocation of Franchisee's or its Operating Principal's driver's license.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the grounds for termination of the Franchise Agreement are detailed in Exhibit C of the agreement.
Termination of the franchise agreement can occur under specific conditions, such as insolvency or violation of applicable laws. The agreement will automatically terminate if bankruptcy proceedings are initiated by or against the franchisee, if the franchisee makes an assignment for the benefit of creditors, admits insolvency, consents to the appointment of a receiver, or if the Bumper Business assets are seized or levied upon, unless such actions are vacated within 30 days after notice from Bumper Man. Similarly, the agreement terminates immediately if the franchisee violates any applicable law or has any necessary license or certification revoked or suspended.
These termination clauses are important for prospective franchisees to understand, as they outline the circumstances under which their franchise can be terminated, potentially resulting in a loss of their investment and business. Franchisees should ensure they fully understand and comply with all applicable laws and maintain the necessary licenses and certifications to avoid termination on these grounds. Additionally, franchisees should manage their business finances carefully to avoid insolvency and potential bankruptcy, which could also lead to termination of the agreement.