What is the franchisee's recourse if the Bumper Man business is attached or seized?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement will automatically terminate upon any of the following: if any bankruptcy proceeding is commenced by or against Franchisee (or any
Affiliate or Principal), the Franchisee makes an assignment for the benefit of creditors or admits in writing its insolvency or inability to pay its debts generally as they become due; Franchisee consents to the appointment of a receiver, trustee or liquidator of all or the substantial part of its property; the Bumper Business or Operating Assets is attached, seized, subjected to a writ or distress warrant or levied upon, unless such attachment, seizure, writ, warrant or levy is vacated within 30 days after Notice from Franchisor; or any order appointing a receiver, trustee or liquidator of Franchisee or the Bumper Business is not vacated within 30 days following the entry of such order. Without limiting the foregoing, Franchisee may request that Franchisor reinstate this Agreement following the entry of an order of bankruptcy discharge from a court of competent jurisdiction, which Franchisor may grant or deny at its sole option and, if granted, Franchisor may require Franchisee to sign Franchisor's then-current form of franchise agreement in lieu of reinstatement of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the Franchise Agreement will automatically terminate if the Bumper Business or its Operating Assets are attached, seized, subjected to a writ or distress warrant, or levied upon. However, the franchisee has a 30-day window after receiving notice from Bumper Man to vacate the attachment, seizure, writ, warrant, or levy.
If the franchisee fails to resolve the attachment or seizure within this 30-day period, the Franchise Agreement is terminated. This means the franchisee would lose the right to operate the Bumper Man business and use its trademarks and system.
Even after termination due to such circumstances, the franchisee may request reinstatement of the agreement following an order of bankruptcy discharge from a competent court. However, Bumper Man has the sole option to grant or deny this request. If reinstatement is granted, Bumper Man may require the franchisee to sign the then-current form of the franchise agreement.