Does the Bumper Man Guaranty cover obligations after the Term of the Franchise Agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
For so long as you are Franchisee's Principal under the Franchise Agreement and for a period of two years from the date you cease to be Franchisee's Principal, you will not, either directly or indirectly, individually or through, on behalf of, or in conjunction with any other person:
- (i) Own, maintain, operate, be employed by, engage in, franchise, lease property to, advise, help, make loans to, or have any interest in, either directly or indirectly, any Competitive Business;
- (ii) Divert or attempt to divert any actual or prospective business or customer of the Bumper Business to any Competitive Business, by direct or indirect inducement or otherwise; or
- (iii) Perform, directly, any or indirectly, any other act injurious to or prejudicial to the goodwill associated with the Marks and the System
The above covenants apply exclusively in the United States of America during the time that you serve as Principal for the Bumper Business and within 25 miles of any then-existing Bumper Man business during the two-year period following the date you cease to be the Principal of the Bumper Business.
Principal further acknowledges and agrees as follows:
- (a) it has read the terms and conditions of the Agreement and acknowledges that the execution of this Guaranty is in partial consideration for, and a condition to Franchisor's execution of the Agreement, and Franchisor would not have granted such rights without the execution of this Guaranty by each of the undersigned
- (b) this Guaranty will remain in force notwithstanding the death of the undersigned, and will be binding on the undersigned's personal representatives; and
- (c) this Guaranty will continue and will be enforceable notwithstanding any change in the name or the constitution of Franchisor or Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, the Guaranty and Undertaking of Obligations, signed by each Principal, remains in force even after the Principal's death and is binding on their personal representatives. Additionally, the Guaranty continues and is enforceable despite any changes in the name or structure of either Bumper Man or the franchisee. This indicates that the obligations under the Guaranty can extend beyond the term of the Franchise Agreement itself.
Specifically, for a period of two years after a Principal ceases to be associated with the Bumper Business, they are restricted from engaging in competitive businesses within a 25-mile radius of any existing Bumper Man location. This includes owning, operating, or being involved with any competitive business, diverting customers, or performing actions detrimental to the goodwill of the Bumper Man brand. These covenants are applicable only within the United States.
Certified Technicians also have obligations that extend beyond the termination of the franchise agreement. The FDD states that Certified Technicians must continue to fulfill every obligation outlined in the Franchise Agreement, unless otherwise specified in the addendum. This includes adherence to representations, warranties, and covenants, such as restrictive covenants and indemnification clauses, even after the agreement's term. This ensures that certain responsibilities and liabilities persist beyond the active franchise period, protecting Bumper Man's interests and brand integrity.