Are Bumper Man franchisees prohibited from performing any action that is injurious or prejudicial to the goodwill associated with the Bumper Man Marks and System?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will refrain from any business or advertising practice which may be injurious to Franchisor's business, to the business of other Bumper Man businesses, or to the goodwill associated with the Marks, provided, however, that nothing in this Section 9(b) or elsewhere in this Agreement restricts or is intended to restrict Franchisee's communications with any state or federal law regulator or enforcement authority about potential violations of law.
(vi) Franchisee (or any of its Principals or Affiliates) is or has been held liable or convicted by a court of law, pleads or has pleaded no contest to, a felony, indictable offense or other unlawful act, engages in any dishonest or unethical conduct or otherwise engages in any act or conduct which Franchisor believes will materially and adversely affect the reputation of the Bumper Business, any other Bumper Man business or the goodwill associated with Marks;
(vii) Franchisee's misuse or unauthorized use of the Marks, including without limitation Franchisee's misuse or unauthorized use of the Marks on its Social Media pages or other Internet site, or registration of a domain name incorporating the Marks;
- (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.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, franchisees are indeed prohibited from performing actions that could harm the goodwill associated with the Bumper Man marks and system. Specifically, the franchise agreement states that franchisees will refrain from any business or advertising practice that may be harmful to the franchisor's business, other Bumper Man businesses, or the goodwill associated with the marks. This is a standard clause in franchise agreements, designed to protect the brand's reputation and value.
Furthermore, the agreement extends this obligation to the franchisee's principal, who must not perform any act injurious or prejudicial to the goodwill associated with the marks and the system, both during their time as a principal and for two years after ceasing to be a principal. This restriction applies within the United States and within 25 miles of any existing Bumper Man business during that two-year period. This non-compete clause is designed to prevent former principals from leveraging their knowledge and experience to directly compete with Bumper Man.
Additionally, the franchise agreement outlines several events that could lead to termination, including conduct that Franchisor believes will materially and adversely affect the reputation of the Bumper Business, any other Bumper Man business or the goodwill associated with Marks. Misuse or unauthorized use of the Marks, including on social media or through domain names, is also grounds for termination. These provisions highlight the importance Bumper Man places on protecting its brand and intellectual property.
For a prospective Bumper Man franchisee, this means they must be vigilant in ensuring their business practices and advertising efforts align with the brand's standards and do not negatively impact its reputation. They should also be aware of the post-termination restrictions on their principal, which could limit their ability to engage in similar businesses for a period of time. Compliance with these provisions is crucial for maintaining a good relationship with Bumper Man and avoiding potential legal issues or termination of the franchise agreement.