factual

Is the Bumper Man franchisee's right to transfer the franchise agreement considered personal?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) Transfer by Franchisee. The rights and duties created by this Agreement are personal to Franchisee, and Franchis

Source: Item 23 — RECEIPTS (FDD pages 45–180)

What This Means (2025 FDD)

According to the 2025 Bumper Man Franchise Disclosure Document, the rights and duties created by the Franchise Agreement are considered personal to the franchisee. This means that the franchisee cannot freely transfer the agreement to someone else without the franchisor's consent.

Bumper Man requires that any transfer of the agreement be approved by the franchisor. This is a common practice in franchising, as the franchisor wants to ensure that any new franchisee meets their standards and is capable of operating the business successfully. The franchisor will likely review the proposed transferee's business experience, financial resources, and character before granting approval.

Additionally, Bumper Man has the right of first refusal to purchase the franchisee's business if the franchisee desires to transfer it. This means that before a franchisee can sell to a third party, they must first offer the business to the franchisor on the same terms. This gives Bumper Man more control over who becomes a franchisee and ensures that the brand's standards are maintained.

In the event of the death or permanent disability of a principal holding a controlling interest in the Bumper Man franchise, the agreement stipulates that the principal's interest must be transferred to a third party approved by the franchisor within a reasonable timeframe, not exceeding six months. Failure to do so constitutes an event of default, highlighting the importance of succession planning for the Bumper Man business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.