What happens if a court finds any part of the Bumper Man non-compete restrictions to be unreasonable?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
If any part of these restrictions is found to be unreasonable in time or distance, each month of time or mile of distance may be deemed a separate unit so that the time or distance may be reduced by appropriate order of the court to that deemed reasonable. If, at any time during the two-year period following the expiration, termination, or approved Transfer of this Agreement or the date any Principal ceases to be a Principal under this Agreement, Franchisee or any of its Principals fails to comply with its obligations under this Section 17(a), that period of non-compliance will not be credited toward satisfaction of the two-year period.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, if a court determines that any aspect of the non-compete restrictions is unreasonable in terms of time or distance, the agreement specifies a method for adjusting those restrictions. Each month of time or mile of distance can be considered a separate unit, allowing the court to reduce the time or distance to a level deemed reasonable.
This provision aims to make the non-compete agreement enforceable by allowing for modifications rather than complete invalidation. It protects Bumper Man's interests by ensuring some level of restriction remains in place, while also preventing overly broad restrictions that could unduly limit a franchisee's ability to work after the franchise agreement ends.
Furthermore, the FDD states that any period of non-compliance with the non-compete obligations by the franchisee or its principals will not count towards fulfilling the two-year restriction period. This means that if a franchisee violates the non-compete agreement, the clock effectively stops, and the franchisee must remain compliant for a full two years to satisfy the obligation. This clause strengthens the enforcement of the non-compete agreement and discourages franchisees from attempting to circumvent its terms.
This type of clause is relatively common in franchise agreements, as franchisors seek to protect their brand and business model while also recognizing the need for reasonable restrictions on franchisees after they leave the system. Prospective Bumper Man franchisees should carefully consider the implications of these non-compete provisions and understand how they might affect their future business opportunities.