What must a Bumper Man franchisee do if a legal action is commenced that may adversely affect the business?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must notify Franchisor in writing immediately upon the commencement of any legal action, suit, or proceeding, any administrative action, or the issuance of an order of any court, agency, or other governmental instrumentality, which may adversely affect the operation of the Bumper Business or Franchisee's financial condition; or the delivery of any notice of violation or alleged violation including arrest of Franchisee (if Franchisee is an individual) or Franchisee's Operating Principal (if Franchisee is an Entity) of any Applicable Law, including those relating to health or safety.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a franchisee must provide written notification to the franchisor immediately upon the commencement of any legal action, suit, or proceeding. This also applies to any administrative action, or the issuance of an order from any court, agency, or other governmental body.
The notification requirement is triggered if the action may adversely affect the operation of the Bumper Business or the franchisee's financial condition. Additionally, the franchisee must report the delivery of any notice of violation or alleged violation, including the arrest of the franchisee (if an individual) or the franchisee's Operating Principal (if the franchisee is an entity), related to any applicable law, including those concerning health or safety.
This requirement ensures that Bumper Man is promptly informed of any legal or administrative issues that could impact the franchise's operations, financial stability, or reputation. By mandating immediate written notification, Bumper Man aims to maintain oversight and address potential problems swiftly, protecting both the franchisee's and the franchisor's interests. This is a fairly standard clause in franchise agreements, allowing the franchisor to offer support or take necessary steps to mitigate any negative consequences arising from such actions.