Is the Bumper Man franchisor obligated to assist the franchisee in reselling the Bumper Business?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Section 16(d)(ii) of the Franchise Agreement is hereby deleted and replaced with the following:
- (2) The proposed transferee (and its direct and indirect owners):
- (i) have sufficient business experience, aptitude, assets and financial resources to operate the Bumper Business;
- (ii) are individuals of good character and otherwise meet Franchisor's thenapplicable Standards for Bumper Man franchisees, including without limitation: (A) the proposed transferee must satisfy Franchisor's minimum net worth, liquid asset, equity/debt ratio and credit score requirements; (B) the proposed transferee must submit a complete and accurate franchise application and payment of all applicable fees; (C) the proposed transferee must complete and pass all background checks; (D) there must not be any felony convictions or other crimes of proposed transferee that may adversely affects the Marks, the System or the Franchisor, and there must not be a pleading of no contest to any other of these by the proposed transferee; (E) there have been no previous claims by the proposed transferee against another franchisor or affiliate; (F) the operation or ownership of the Bumper Business or proposed transferee's entity will not violate any contracts with any third party; and (G) the proposed transferee must not have a pattern or practice of litigiousness;
- (iii) are not engaged and will not engage in the operation or ownership of a Competitive Business, and will engage only in the operation of the Bumper Business; and
- (iv) will cooperate with reasonable due diligence requests made by Franchisor promptly thereafter and if additional time is reasonably needed, then prior to the proposed effective date of the Transfer. Franchisor may expand upon, and provide more details related to, the conditions for transfer and Franchisor's consent as described in this Section 16(c), and may do so in the Manual or otherwise in writing. Franchisor may, but is not obligated to, provide additional details regarding the transfer conditions and Franchisor's consent to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
The 2025 Bumper Man Franchise Disclosure Document does not explicitly state that the franchisor is obligated to assist a franchisee in reselling their Bumper Business. However, the FDD does outline conditions for transferring the franchise to a new owner.
Specifically, Section 16(d)(ii) of the Franchise Agreement, as amended, details the requirements a proposed transferee must meet to be approved by Bumper Man. These include having sufficient business experience, aptitude, assets, and financial resources. The transferee must also meet Bumper Man's standards for franchisees, including net worth, liquid asset, equity/debt ratio, and credit score requirements. They must also pass background checks and have no felony convictions that could adversely affect the Bumper Man brand.
While Bumper Man outlines the conditions for transfer and may provide additional details in the Manual or in writing, it is not obligated to provide assistance in finding a buyer or facilitating the resale process. A prospective franchisee should inquire with Bumper Man about any resources or support they might offer to franchisees looking to sell their businesses, even though it is not a contractual obligation.