Can the Franchisor operate a Bumper Man business outside the Designated Area?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) Reserved Rights. Franchisor retains all rights inside and outside the Designated Area except those that are expressly granted to Franchisee in this Agreement. Without limiting Franchisor's and its Affiliate's rights described in this Section 2(e), Franchisor and its Affiliates and any other authorized Person may, among other things:
- (i) Advertise and promote the System within and outside the Designated Area;
- (ii) Operate, and license others to operate, a Bumper Business at any location outside the Designated Area, including locations that are adjacent to the Designated Area;
- (iii) Establish and operate, and license others to establish and operate, any business other than a Bumper Man business, including other automotive repair businesses, under the Marks or under other marks; and
(iv) Establish and operate and license others to establish and operate any auto repair businesses or other businesses that Franchisor or its Affiliates may operate as a result of any acquisition, consolidation or merger.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the franchisor retains specific rights both inside and outside a franchisee's designated area. This means that while a franchisee is granted the right to operate within their designated area, Bumper Man reserves the right to conduct certain activities independently.
Specifically, Bumper Man can advertise and promote the Bumper Man system both within and outside the designated area. More importantly, Bumper Man retains the right to operate, or license others to operate, a Bumper Man business at any location outside the franchisee's designated area. This includes the possibility of Bumper Man establishing a business adjacent to a franchisee's territory. Bumper Man can also establish and operate businesses other than Bumper Man businesses, including other automotive repair businesses, under the Bumper Man marks or other marks.
This clause also allows Bumper Man to operate any auto repair businesses or other businesses that it or its affiliates may operate due to any acquisition, consolidation, or merger. This reservation of rights means that a Bumper Man franchisee's territory is not completely exclusive, and the franchisee faces the risk of competition from the franchisor or its licensees outside of their designated area.