Can a Bumper Man franchisee own a competitive business during the term of the franchise agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| j. Assignment of contract | Section 16(a) | names, electronic mail address, websites, social media accounts and search engines related to the operation of the Bumper Business or the System or that otherwise associates you with the Bumper Man brand to us or our designee; de identification of your Bumper Man vehicle in accordance with our then-current standards described in the Manual; and compliance with all post-termination covenants and obligations, including without limitation confidentiality, competition and indemnification. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2025 FDD)
Based on the 2025 Bumper Man Franchise Disclosure Document, the provided excerpts do not explicitly state whether a franchisee can own a competitive business during the term of the franchise agreement. However, the document does state that a franchisee's obligations upon termination or non-renewal include compliance with post-termination covenants and obligations, including competition.
Item 17 details various aspects of the franchise agreement related to renewal, termination, and transfer, but it does not directly address the ownership of a competitive business during the franchise term. The document outlines conditions under which the franchise agreement can be terminated, such as engaging in dishonest or unethical conduct that may adversely affect the brand or system. It also mentions obligations upon termination, including restrictions on competition.
To fully understand the restrictions on owning a competitive business, a prospective Bumper Man franchisee should carefully review the full franchise agreement and specifically ask the franchisor about any clauses that address competitive activities during the term of the agreement. This would include clarifying the scope and duration of any non-compete provisions that might apply both during and after the franchise term.