Is the Bumper Man franchisee allowed to advise or help a Competitive Business?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
For so long as you are Franchisee's Principal under the Franchise Agreement and for a period of two years from the date you cease to be Franchisee's Principal, you will not, either directly or indirectly, individually or through, on behalf of, or in conjunction with any other person:
- (i) Own, maintain, operate, be employed by, engage in, franchise, lease property to, advise, help, make loans to, or have any interest in, either directly or indirectly, any Competitive Business;
- (ii) Divert or attempt to divert any actual or prospective business or customer of the Bumper Business to any Competitive Business, by direct or indirect inducement or otherwise; or
- (iii) Perform, directly, any or indirectly, any other act injurious to or prejudicial to the goodwill associated with the Marks and the System
The above covenants apply exclusively in the United States of America during the time that you serve as Principal for the Bumper Business and within 25 miles of any then-existing Bumper Man business during the two-year period following the date you cease to be the Principal of the Bumper Business.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, franchisees and their principals face restrictions on involvement with competitive businesses. During the term of the franchise agreement, franchisees are prohibited from owning, operating, or being employed by a Competitive Business. This restriction also extends to advising or helping a Competitive Business, making loans to one, or having any direct or indirect interest in such a business. This restriction applies to any Competitive Business located within the United States during the term of the agreement.
After the franchise term expires, is terminated, or is transferred, these restrictions continue to apply to the franchisee and their principals. Specifically, they cannot be involved with a Competitive Business located within 25 miles of the Designated Area or any other Bumper Man business. However, this geographic restriction can be waived if the franchisor provides written approval.
These non-compete obligations are significant for prospective franchisees. They prevent franchisees from leveraging their knowledge and resources gained from Bumper Man to benefit a competing business, both during and for a period after the franchise agreement. The restrictions are designed to protect Bumper Man's market share and confidential information. The FDD also states that if any part of these restrictions is found to be unreasonable, the terms can be adjusted by a court to what is deemed reasonable.