For how long after the expiration, termination, or approved transfer of a Bumper Man franchise is the franchisee subject to the non-compete agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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, franchisees are subject to a non-compete agreement for two years following the expiration, termination, or approved transfer of the franchise agreement. This restriction also applies to a Principal of the franchise, starting from the date they cease to be a Principal under the agreement.
During this two-year period, the non-compete clause restricts the franchisee (or former Principal) from engaging in any Competitive Business within 25 miles of the Designated Area or near any other Bumper Man business. However, this restriction can be waived if the franchisor provides written approval.
It's important to note that any period of non-compliance with the non-compete obligations during the two-year term will not count towards fulfilling the restriction. This means that if a franchisee violates the non-compete agreement, the two-year clock may be paused or reset, potentially extending the overall duration of the non-compete obligation. If any part of the 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.