Is the Franchisee obligated to operate the Bumper Man business within the Designated Area?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
2. GRANT OF FRANCHISE.
- (a) Grant. Subject to the reserved rights described in Section 2(e), Franchisor grants to Franchisee, upon the terms and conditions in this Agreement, the right and license, and Franchisee hereby accepts the right and obligation, to operate a Bumper Business within the Designated Area.
- (b) Designated Area. Franchisee must operate the Bumper Business within the Designated Area. Upon the Parties' execution of Exhibit D identifying Franchisee's Designated Area it will be deemed incorporated herein. Except as otherwise provided in this Agreement, and subject to Franchisee's full compliance with this Agreement and any other agreement between Franchisee or any of its Affiliates and Franchisor or any of its Affiliates, neither Franchisor nor any Affiliate will operate, or authorize any Person other than Franchisee to operate a Bumper Business in the Designated Area during the Term.
- (c) Designated Area Limited Exclusivity. If the demographics substantially change within Franchisee's Designated Area, and Franchisor determines that the Designated Area may no longer be adequately serviced in accordance with the Standards by a single Bumper Man franchisee, Franchisor, in its reasonable business judgment, may: (i) reduce the size of the
- Designated Area, so long as Franchisee's Designated Area contains a minimum of 35 Major Dealerships; or (ii) offer the opportunity for Franchisee to retain the services of a Certified Technician that satisfies Franchisor's then-current criteria for Certified Technicians and is approved by Franchisor in writing within 30 days of Franchisor's Notice of intent to modify the Designated Area. If Franchisor offers the opportunity for Franchisee to retain the services of a Certified Technician, then within 60 days following Franchisor's approval of Franchisee's Certified Technician, Franchisee and the Certified Technician will execute Franchisor's current form of Certified Technician Addendum and the Certified Technician will pay the Certified Technician Fee and complete Initial Training.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the franchisee is obligated to operate the Bumper Man business within the designated area. The FDD states that the franchisee accepts the right and obligation to operate the Bumper Business within the Designated Area.
The agreement specifies that upon the execution of Exhibit D, which identifies the franchisee's designated area, it will be incorporated into the agreement. Except as otherwise provided in the agreement, and subject to the franchisee's full compliance, Bumper Man will not operate or authorize any person other than the franchisee to operate a Bumper Man business in the designated area during the term.
However, if the demographics substantially change within the franchisee's designated area, and Bumper Man determines that the area may no longer be adequately serviced by a single franchisee, Bumper Man may reduce the size of the designated area, provided that the designated area contains a minimum of 35 Major Dealerships. Alternatively, Bumper Man may offer the franchisee the opportunity to retain a Certified Technician approved by Bumper Man. If the franchisee retains a Certified Technician, they must execute Bumper Man's current form of Certified Technician Addendum, and the Certified Technician must pay the Certified Technician Fee and complete Initial Training.