What is the Bumper Man franchisee's obligation regarding insurance coverage?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
rce and use of funds statements and a balance sheet as of the end of such fiscal year. Franchisor also reserves the right to require Franchisee to deliver any other financial data, tax statements or other financial reports that Franchisor may reasonably periodically request, in the form, manner, and frequency requested. Each report will be signed or otherwise verified by Franchisee that such data, statement and reports are true, accurate and complete.
13. INSURANCE.
(a) Minimum Requirements. Franchisee must obtain and maintain in effect for the Bumper Business the insurance policies set forth in Exhibit E, as may be amended by Franchisor from time to time. These insurance policies and limits described in Exhibit E will not limit, and are independent of, the indemnification obligations under this Agreement.
- (b) Proof of Insurance. At least two weeks prior to the Commencement Date, thereafter, at least 30 days prior to the expiration of any such policy, Franchisee will deliver to Franchisor evidence of such insurance in the form of certificates evidencing such coverage as well as endorsements reflecting the requirements of this Section 13 and all language wherever found in the policies that related to the determination of who is an additional insured, and the scope of the additional insured's coverage. Franchisor has the right, but not the obligation to inspect any actual policies required under this Agreement for compliance with all specified coverage, terms, conditions, endorsements, and limits relative to this Agreement.
- (c) Franchisee Acknowledgment as to Minimum Insurance Requirements. Franchisee acknowledges and agrees that the coverages required by Franchisor are the minimum amounts of coverage that Franchisee must procure under this Agreement. Franchisee is free to buy additional insurance coverage or increase the amounts of coverage as Franchisee deems appropriate based on Franchisee's investigation as to whether additional coverages or higher amounts are necessary. Franchisee further acknowledges and agrees that Franchisee is not relying upon Franchisor to determine the amount or type of insurance coverage necessary for Franchisee. FRANCHISEE RELEASES FRANCHISOR FROM ANY AND ALL CLAIMS RELATING TO THE PROCUREMENT OF INSURANCE INCLUDING CLAIMS THAT FRANCHISOR DID NOT REQUIRE FRANCHISEE TO PROCURE ADEQUATE INSURANCE.
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- PROTECTION OF MARKS AND RELATED INTELLECTUAL PROPERTY.
- (a) Goodwill in Marks and Intellectual Property. Franchisor or its Affiliates are the exclusive owner of Marks and all other
Intellectual Property provided or to be provided to Franchisee. Franchisee's right to use the Marks and any other Intellectual Property is derived solely from this Agreement and limited to its operation of the Bumper Business pursuant to and in compliance with this Agreement. Franchisee's use of Marks and any goodwill associated with such use and any other Intellectual Property will be exclusively for Franchisor's benefit, and this Agreement does not confer any goodwill or other interests in the Marks or other Intellectual Property upon Franchisee.
(b) Limitations on Franchisee's Use of Marks. Franchisee will use the Marks as the sole identification of the Bumper Business, except that Franchisee must identify itself as the independent owner thereof in the manner Franchisor prescribes. Franchisee may not use any Mark as part of any Entity name or with any prefix, suffix, or other modifying words, terms, designs, or symbols (other than logos licensed to Franchisee hereunder), or in any modified form, nor may Franchisee use any Mark in connection with the performance of any unauthorized services or sale of any unauthorized products; as part of any domain name, electronic address, metatag, or otherwise on the Internet or in connection with any website (unless expressly authorized in writing by Franchisor); or in any other manner that Franchisor has not expressly authorized in writing. Franchisee will display the Marks in the manner Franchisor prescribes at the Bumper Business, on supplies or materials Franchisor designates, and in connection with forms and advertising and marketing materials.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, franchisees are required to obtain and maintain specific insurance policies throughout the term of their franchise agreement. These requirements are detailed in Exhibit E of the Franchise Agreement, which Bumper Man can amend over time. The insurance policies and limits outlined in Exhibit E are independent of any indemnification obligations the franchisee has under the agreement.
Specifically, franchisees must provide evidence of insurance to Bumper Man at least two weeks before the commencement date and 30 days before the expiration of any policy. This evidence must be in the form of certificates showing coverage and endorsements that meet the requirements of Section 13, including details about who is an additional insured and the scope of their coverage. Bumper Man retains the right, but not the obligation, to inspect the actual insurance policies to ensure compliance with the agreement's terms.
The required insurance coverages include Garage Liability Insurance with a minimum policy limit of $1,000,000 per occurrence, Garage Keepers Insurance with a limit of $50,000 per vehicle, and Commercial Vehicle Insurance with a combined single policy limit of $500,000. All policies must be issued by carriers with an A.M. Best Rating of A+ or better and authorized to do business in the state where the Bumper Business is located. The policies must also include a waiver of subrogation in favor of Bumper Man, be primary and non-contributory to any other insurance, and provide 30 days' prior written notice to Bumper Man for any material changes or cancellations.
Bumper Man emphasizes that the required coverages are minimums, and franchisees are free to buy additional coverage or increase the amounts as they see fit, based on their own assessment of necessary coverage. Franchisees acknowledge that they are not relying on Bumper Man to determine the necessary amount or type of insurance and release Bumper Man from any claims related to the procurement of insurance, including claims that Bumper Man did not require adequate insurance.