Can a Bumper Man franchisee be employed by a competitive business during the term of the franchise agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Agreement | ||
|---|---|---|
| Business without our prior written consent; you | ||
| or your principals or affiliates being held liable | ||
| or convicted of a felony, indictable offense or | ||
| other unlawful act or you or your principals or | ||
| affiliates engaging in any dishonest or unethical | ||
| conduct or act that may materially or adversely | ||
| affect the brand, System or goodwill associated | ||
| with the Marks; any unauthorized use or misuse | ||
| of the Marks; any unauthorized transfer under | ||
| Section 16 by you or any of your principals or | ||
| affiliates; any unauthorized disclosure or use of | ||
| our confidential information (including without | ||
| limitation the Manual); any failure by you, your | ||
| principals or your operator to comply with the | ||
| representations, warranties and covenants set | ||
| forth in the Franchise Agreement; termination by | ||
| us or our affiliates of any other agreement with | ||
| you or your affiliates; failure to pay any taxes | ||
| applicable to the Bumper Business and its | ||
| operations; failure to comply with applicable | ||
| law; loss or revocation of any license or permit | ||
| required to operate the Bumper Business; if, on | ||
| three or more occasions in any 12-month period, | ||
| you fail to submit when due reports or other | ||
| information | ||
| required | ||
| under | ||
| the | ||
| Franchise | ||
| Agreement, fail to pay when due any amounts | ||
| due to us or our affiliates or fail to materially | ||
| comply | ||
| with | ||
| the | ||
| Franchise | ||
| Agreement, | ||
| regardless | ||
| of | ||
| whether | ||
| you | ||
| corrected | ||
| such | ||
| failures; less than 35% of your Gross Sales | ||
| during each month in any consecutive 2-month | ||
| period is generated from the repair of metal | ||
| bumpers; and you or a principal refuses to take a | ||
| drug test we request (if applicable law permits us | ||
| to request that you or your principal take a drug | ||
| test) or fail any drug test so taken | ||
| i. Your obligations on termination/non-renewal | Section 19 | Obligations include ceasing operation of your Bumper Business; payment of all amounts owed to us; discontinuing the use of all Marks; ceasing use of the System and our confidential information (including without limitation the Manual) and returning copies of all such confidential information to us; assignment or cancellation of telephone numbers, domain |
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 excerpts provided do not explicitly state whether a franchisee can be employed by a competitive business during the term of the franchise agreement. However, the document does state that upon termination or non-renewal of the franchise agreement, the franchisee is obligated to cease operation of their Bumper Business.
Additionally, the franchisee must discontinue the use of all Marks, cease use of the System and Bumper Man's confidential information (including without limitation the Manual) and return copies of all such confidential information. The franchisee must also assign or cancel telephone numbers, domain names, electronic mail addresses, 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 fully understand whether a Bumper Man franchisee can be employed by a competitive business during the term of the franchise agreement, a prospective franchisee should review the franchise agreement in its entirety and seek clarification from the franchisor regarding any potential restrictions on outside employment.