If a Bumper Man Maker defaults on any terms of the franchise agreement, what is the consequence?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
The occurrence of any one of the following events shall constitute a default by Maker ("Event of Default") under this Note:
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- Maker's failure to pay any amounts due hereunder on the due date therefor which failure shall not be cured within 15 days from the date on which Maker received written notice thereof; or
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- Maker defaults under any of the terms, covenants or conditions contained in the Bumper Man franchise agreement between Maker and Payee (the said covenants, terms, provisions, and conditions and all matters and things are incorporated hereby as if fully set forth herein); or
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- The Bumper Man franchise agreement between Maker and Payee is terminated by either party or expires without renewal; or
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- A proceeding under any bankruptcy, reorganization, arrangement of debt, insolvency, readjustment of debt or receivership law or statute is filed against the Maker or any guarantor which is not dismissed within 30 days of its filing, or a proceeding under any bankruptcy, reorganization, arrangement of debt, insolvency, readjustment of debt or receivership law or statute is filed by Maker or any guarantor, or Maker or any guarantor makes an assignment for the benefit of creditors.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, if a Maker defaults on any of the terms, covenants, or conditions in the Bumper Man franchise agreement, it constitutes an Event of Default under the Promissory Note. This means that the terms, provisions, and conditions of the franchise agreement are incorporated into the Promissory Note as if they were fully detailed within it.
Specifically, the FDD states that one of the events constituting a default by the Maker is when the "Maker defaults under any of the terms, covenants or conditions contained in the Bumper Man franchise agreement between Maker and Payee". This clause links the franchise agreement directly to the financial obligations outlined in the Promissory Note. Therefore, any breach of the franchise agreement can trigger a default under the Promissory Note, giving Bumper Man recourse to act.
This has significant implications for a prospective Bumper Man franchisee. It means that not only are they bound by the standard terms of the franchise agreement, but any failure to comply with those terms could also lead to financial repercussions through the Promissory Note. Franchisees need to understand all aspects of the franchise agreement and ensure they can meet all obligations to avoid triggering a default.