After the Bumper Man franchise agreement expires, terminates, or is transferred, what is the geographic scope of the non-compete restriction?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term, this restriction applies to any Competitive Business located within the United States. Following the expiration of the Term, termination of this Agreement, or an approved Transfer of this Agreement and with respect to a Principal, following the date the Principal ceases to be a Principal under this Agreement, this restriction will apply to any Competitive Business located within 25 miles of the Designated Area and any other Bumper Man business, except as otherwise approved in writing by Franchisor.
If any part of these restrictions is found to be unreasonable in time or distance, each month of time or mile of distance may be deemed a separate unit so that the time or distance may be reduced by appropriate order of the court to that deemed reasonable. If, at any time during the two-year period following the expiration, termination, or approved Transfer of this Agreement or the date any Principal ceases to be a Principal under this Agreement, Franchisee or any of its Principals fails to comply with its obligations under this Section 17(a), that period of non-compliance will not be credited toward satisfaction of the two-year period.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the non-compete restriction following the expiration, termination, or transfer of the franchise agreement applies to any Competitive Business located within 25 miles of the Designated Area and any other Bumper Man business. This restriction also applies to a Principal after they cease to be a Principal under the agreement.
This means that after a franchisee's agreement ends, they (or a former principal) cannot own, operate, or be involved with a competing business within a 25-mile radius of their former Bumper Man location or any other Bumper Man franchise. This prevents former franchisees from directly leveraging the knowledge and experience gained while operating a Bumper Man franchise to compete against the brand.
The FDD also states that if any part of these restrictions is found to be unreasonable in time or distance, each month of time or mile of distance may be deemed a separate unit so that the time or distance may be reduced by appropriate order of the court to that deemed reasonable. Additionally, any period of non-compliance by the franchisee or its principals will not be credited toward the satisfaction of the two-year non-compete period.