What happens if a Bumper Man franchisee is convicted of a felony?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (vi) Franchisee (or any of its Principals or Affiliates) is or has been held liable or convicted by a court of law, pleads or has pleaded no contest to, a felony, indictable offense or other unlawful act, engages in any dishonest or unethical conduct or otherwise engages in any act or conduct which Franchisor believes will materially and adversely affect the reputation of the Bumper Business, any other Bumper Man business or the goodwill associated with Marks;
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, if a franchisee, their principals, or affiliates are convicted of a felony, it constitutes an event of default. This gives Bumper Man the right to terminate the franchise agreement. The termination can occur immediately upon notice from Bumper Man if there is no cure period specified.
This clause protects Bumper Man's brand reputation and goodwill. The FDD states that a felony conviction, or even pleading no contest to such a charge, can be grounds for termination if Bumper Man believes it will materially and adversely affect the reputation of the Bumper Business, any other Bumper Man business, or the goodwill associated with its marks.
This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand from damage caused by franchisees' criminal behavior. Prospective Bumper Man franchisees should be aware that any felony conviction during their time as a franchisee, or even of their principals or affiliates, could lead to the termination of their franchise agreement.