What does the Bumper Man franchise agreement state regarding the enforceability of covenants restricting competitive activity if the scope is deemed too broad?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the franchise agreement addresses the enforceability of covenants restricting competitive activity. Specifically, if any covenant restricting competitive activity is deemed unenforceable due to its scope (geographical area, type of business activity, or length of time), but could be enforceable with a reduction in scope, Bumper Man states that the covenant will be enforced to the fullest extent permissible under applicable law and public policy.
This provision means that Bumper Man aims to ensure that non-compete agreements are upheld as much as possible, even if the original terms are deemed too broad by a court. Rather than the entire covenant being thrown out, the agreement allows for the terms to be modified (e.g., reducing the geographical area or the duration of the restriction) to make them enforceable.
For a prospective Bumper Man franchisee, this implies that non-compete obligations are taken seriously by the franchisor and are likely to be enforced within reasonable limits. It is important for franchisees to fully understand the scope of these restrictions before signing the agreement, as courts may modify and still enforce them to some degree. Franchisees should seek legal counsel to understand the specific implications of these covenants in their jurisdiction.