Is the Bumper Man franchisee allowed to make loans to a Competitive Business?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
property to, advise, help, make loans to, or have any interest in, either directly or indirectly, any Competitive Business.
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.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, during the term of the franchise agreement, a franchisee is restricted from making loans to any Competitive Business within the United States. After the agreement expires, is terminated, or is successfully transferred, this restriction is limited to Competitive Businesses 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.
This restriction also applies to a Principal of the Bumper Man franchise. For as long as an individual serves as a Principal for the Bumper Business, they are prohibited from making loans to a Competitive Business. This restriction extends for two years after the date they cease to be a Principal. During this two-year period, the restriction is limited to within 25 miles of any then-existing Bumper Man business.
These non-compete clauses are fairly standard in franchising to protect the brand and business model. The franchisor aims to prevent franchisees or their principals from using the knowledge and resources gained from the Bumper Man franchise to support or operate competing businesses, especially in close proximity to existing Bumper Man locations. Prospective franchisees should carefully consider these restrictions, especially if they have existing business interests or plan to engage in other ventures after leaving the Bumper Man system.