What is the Bumper Man franchisor's consideration for allowing the franchisee access to and use Confidential Information?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee recognizes that Franchisor has developed and owns the goodwill in the Brand and must protect the Marks, Confidential Information, and System. Franchisee and its Principals each acknowledges and agrees that the access to and use of Confidential Information authorized by this Agreement are among the consideration for the restrictive covenants set forth in Section 17(a), and Franchisee and its Principals each further acknowledges and agrees that the restrictive covenants set forth in Section 17(a) are necessary to prevent Franchisor from suffering irreparable harm. THE FOREGOING ACKNOWLEDGMENTS AND AGREEMENTS ARE A MATERIAL INDUCEMENT FOR FRANCHISOR TO ALLOW FRANCHISEE AND ITS PRINCIPALS TO HAVE ACCESS TO AND USE CONFIDENTIAL INFORMATION.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the franchisee's agreement to certain restrictive covenants is the franchisor's consideration for allowing the franchisee access to and use of confidential information. These restrictive covenants, outlined in Section 17(a) of the agreement, are a material inducement for Bumper Man to grant franchisees and their principals access to and use of confidential information.
These restrictive covenants likely include non-compete agreements that prevent the franchisee from engaging in competitive business activities during the term of the franchise agreement and for a specified period afterward. They also likely address the non-disclosure of confidential information, ensuring that franchisees and their principals do not misuse or disseminate proprietary information that could harm Bumper Man's competitive advantage.
By agreeing to these restrictive covenants, prospective Bumper Man franchisees acknowledge the value and importance of the confidential information they will receive and commit to protecting Bumper Man's interests. This arrangement is typical in franchising, where franchisors share valuable trade secrets and operational know-how with franchisees, and it is crucial for maintaining the integrity and competitiveness of the Bumper Man system.