What is the Bumper Man franchisee acknowledging regarding the access to and use of Confidential Information?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee recognizes that Franchisor has developed and owns the goodwill in the Brand and must protect the Marks, Confidential Information, and System. Franchisee and its Principals each acknowledges and agrees that the access to and use of Confidential Information authorized by this Agreement are among the consideration for the restrictive covenants set forth in Section 17(a), and Franchisee and its Principals each further acknowledges and agrees that the restrictive covenants set forth in Section 17(a) are necessary to prevent Franchisor from suffering irreparable harm. THE FOREGOING ACKNOWLEDGMENTS AND AGREEMENTS ARE A MATERIAL INDUCEMENT FOR FRANCHISOR TO ALLOW FRANCHISEE AND ITS PRINCIPALS TO HAVE ACCESS TO AND USE CONFIDENTIAL INFORMATION.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, franchisees and their principals acknowledge that their access to and use of Confidential Information is a key consideration for the restrictive covenants outlined in Section 17(a) of the franchise agreement. They further acknowledge that these restrictive covenants are essential to prevent Bumper Man from suffering irreparable harm.
This acknowledgment serves as a material inducement for Bumper Man to grant franchisees and their principals access to and the right to use Confidential Information. In essence, franchisees agree to certain restrictions, such as non-compete clauses, in exchange for being allowed to utilize Bumper Man's proprietary information.
This agreement is a legally binding commitment. If a franchisee breaches these covenants, Bumper Man can take legal action to protect its interests. Prospective franchisees should carefully review Section 17(a) to fully understand the scope and implications of these restrictive covenants before signing the franchise agreement.