What happens if a Bumper Man franchisee fails to comply with the covenants, representations, and warranties in the agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
(x) Franchisee and Franchisee's Principals or Operating Principal fails to comply with or perform its covenants, representations and warranties in this Agreement, including without limitation the representations, warranties and covenants set forth in Section 10, the representations and warranties with respect to anti-corruption, anti-boycott and anti-terrorism laws set forth in Section 15 and the restrictive covenants against competition set forth in Section 17;
(b) Termination for Other Material Breach.
Except as provided in Section 18(a), Franchisor may terminate this Agreement for failure by Franchisee (or any of its Principals) to comply with any other material provision of this Agreement, including, without limitation, the representations and warranties contained in this Agreement, or any Standard material to operation of the Bumper Business within 30 days after Notice of such Event of Default is delivered to Franchisee.
- (c) Termination for Repeated Default.
This Agreement will terminate immediately upon delivery of Notice to Franchisee if Franchisee (or any of its Principals) fails on three or more separate occasions within any period of 12 consecutive months to do any one or more or combination of the following: (1) submit when due reports or other data, information or supporting record; (2) pay when due any amounts due to Franchisor or its Affiliates; or (3) otherwise materially comply with this Agreement, whether or not such failures are corrected after Notice of such failure is delivered to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, if a franchisee (or any of its Principals or Operating Principal) fails to comply with or perform its covenants, representations, and warranties in the Franchise Agreement, Bumper Man may terminate the agreement. This includes, but is not limited to, the representations, warranties, and covenants set forth in Section 10, the representations and warranties with respect to anti-corruption, anti-boycott and anti-terrorism laws set forth in Section 15 and the restrictive covenants against competition set forth in Section 17.
Specifically, Bumper Man can terminate the agreement if the franchisee fails to comply with any other material provision of the Agreement, including the representations and warranties contained within, or any standard material to the operation of the Bumper Business. Bumper Man will provide a 30-day notice to the franchisee to correct the issue. If the franchisee fails to remedy the breach within this period, termination proceedings may commence.
Additionally, the agreement will terminate immediately upon delivery of notice to the franchisee if the franchisee fails on three or more separate occasions within any period of 12 consecutive months to do any one or more or combination of the following: (1) submit when due reports or other data, information or supporting record; (2) pay when due any amounts due to Franchisor or its Affiliates; or (3) otherwise materially comply with this Agreement, whether or not such failures are corrected after Notice of such failure is delivered to Franchisee. This is termed as 'Termination for Repeated Default'.