What is the Bumper Man franchisee prohibited from doing with respect to a Competitive Business?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
For so long as you are Franchisee's Principal under the Franchise Agreement and for a period of two years from the date you cease to be Franchisee's Principal, you will not, either directly or indirectly, individually or through, on behalf of, or in conjunction with any other person:
- (i) Own, maintain, operate, be employed by, engage in, franchise, lease property to, advise, help, make loans to, or have any interest in, either directly or indirectly, any Competitive Business;
- (ii) Divert or attempt to divert any actual or prospective business or customer of the Bumper Business to any Competitive Business, by direct or indirect inducement or otherwise; or
- (iii) Perform, directly, any or indirectly, any other act injurious to or prejudicial to the goodwill associated with the Marks and the System
The above covenants apply exclusively in the United States of America during the time that you serve as Principal for the Bumper Business and within 25 miles of any then-existing Bumper Man business during the two-year period following the date you cease to be the Principal of the Bumper Business.
Principal further acknowledges and agrees as follows:
- (a) it has read the terms and conditions of the Agreement and acknowledges that the execution of this Guaranty is in partial consideration for, and a condition to Franchisor's execution of the Agreement, and Franchisor would not have granted such rights without the execution of this Guaranty by each of the undersigned
- (b) this Guaranty will remain in force notwithstanding the death of the undersigned, and will be binding on the undersigned's personal representatives; and
- (c) this Guaranty will continue and will be enforceable notwithstanding any change in the name or the constitution of Franchisor or Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, a franchisee is restricted from certain activities related to competitive businesses, both during the term of the franchise agreement and for a period after its expiration or transfer. Specifically, during the franchise term, these restrictions apply to any competitive business located within the United States.
After the agreement expires, is terminated, or is transferred, or when a principal ceases to be a principal, the restrictions apply to any competitive business within 25 miles of the designated Bumper Man area or any other Bumper Man business. These restrictions include prohibitions on owning, maintaining, operating, or being employed by a competitive business. Franchisees are also barred from engaging in, franchising, leasing property to, advising, helping, or making loans to a competitive business, or having any direct or indirect interest in such a business.
These non-compete obligations are standard in franchising to protect the brand and system. The FDD also states that if any part of these restrictions is found unreasonable in time or distance, the court may reduce the time or distance to what is deemed reasonable. Non-compliance with these obligations during the two-year period following the end of the agreement does not count towards fulfilling the non-compete period.