Can the Bumper Man franchisor amend the conditions for approval of transfer?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Conditions for Approval of Transfer. If the proposed Transfer by Franchisee is of this Agreement, Control of Franchisee or substantially all of Franchisee's assets, or is one of a series of Transfers (regardless of the time period over which such Transfers occur) which in the aggregate constitute the Transfer of this Agreement or Control of Franchisee, and if Franchisor has not exercised its right of first refusal under Section 16(g), Franchisor will approve a Transfer
only if the conditions set forth in this Section 16(d), as may be amended by Franchisor from time to time, are met prior to or concurrently with the proposed effective date of the Transfer:
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the franchisor can amend the conditions for approval of a franchise transfer. The FDD states that the franchisor will approve a transfer only if the conditions outlined in Section 16(d) are met, and that these conditions may be amended by Bumper Man from time to time.
These conditions include requirements related to the franchisee's payments and compliance, the transferee's qualifications and financial resources, completion of initial training, agreement to the current franchise agreement terms, agreement on purchase terms, and payment of a transfer fee. The franchisor's ability to amend these conditions gives them flexibility in evaluating potential transferees and ensuring they meet the brand's standards.
An addendum modifies Section 16(d)(ii) of the Franchise Agreement, detailing specific standards for potential transferees. These standards include minimum net worth, liquid asset, equity/debt ratio, credit score requirements, background checks, and stipulations regarding felony convictions or prior claims against other franchisors. Bumper Man may also expand upon these conditions in the Manual or in writing. This indicates that the conditions for transfer can be quite detailed and subject to change, which a prospective franchisee should consider.
It is important for a potential Bumper Man franchisee to understand that the transfer of their franchise is not guaranteed, even if they find a willing buyer. The franchisor has significant control over the transfer process and can change the requirements at any time. Therefore, it is crucial to maintain a good relationship with the franchisor and stay informed about any changes to the transfer conditions.