Can a Bumper Man franchisee establish and operate a business other than a Bumper Man business under the Bumper Man marks?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not, except as provided below, and as long as you are in full compliance with the Franchise Agreement, establish and operate or license or authorize any other party to establish or operate a Bumper Business within the Designated Area for the term of the Franchise Agreement. Except as expressly limited by the previous sentence, we and our affiliates retain all rights with respect to Bumper Businesses, the Marks, the sale of similar or dissimilar products and services and any other activities we deem appropriate whenever and wherever we desire. Specifically, we and our affiliates reserve the following rights:
- (1) Advertise and promote the Bumper Man system within and outside the Designated Area;
- (2) Operate, and license others to operate, a Bumper Business at any location outside the Designated Area, including locations that are adjacent to the Designated Area;
- (3) Establish and operate, and license others to establish and operate, any business other than a Bumper Man business, including other automotive repair businesses, under the Marks or under other marks; and
- (4) Establish and operate and license others to establish and operate any auto repair businesses or other businesses that Franchisor or its Affiliates may operate as a result of any acquisition, consolidation, or merger.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a franchisee is not allowed to establish and operate a business other than a Bumper Man business under the Bumper Man marks. However, Bumper Man and its affiliates retain the rights to establish and operate any business other than a Bumper Man business, including other automotive repair businesses, under the Bumper Man marks or under other marks.
This means that while a franchisee is restricted to operating only the Bumper Man business within their designated area, Bumper Man itself can operate or license others to operate different types of businesses, even those that might be similar to or compete with the Bumper Man business, using the same or different trademarks. This is a significant point for potential franchisees to consider, as it clarifies that the franchisor retains broad rights to diversify and operate other ventures, potentially within the same industry.
This clause protects Bumper Man's ability to expand into related or new business areas without being restricted by the agreements with its franchisees. While franchisees focus on their specific Bumper Man operations, the franchisor maintains the flexibility to explore other business opportunities, which could include ventures that operate under different brands or business models. Prospective franchisees should be aware of this provision, as it highlights the franchisor's broader business interests and the non-exclusive nature of the brand's usage rights.