For how long after the termination or expiration of a Bumper Man Franchise Agreement are non-competition covenants in effect?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| p. Your death or disability | Section 16(f) | Upon death or disability of your Operating Principal or if we determine the death or disability of your Operating Principal adversely affects the operation of the Bumper Business, you must transfer your Operating Principal's interest in you to us or a third party approved by us within two months of such death or disability. |
| q. Non-competition covenants during the term of the franchise | Section 17(a) | You and your principals will not divert any business or customer to a competitor, perform directly or indirectly any act injurious or prejudicial to the goodwill of the Marks and System, and you will not own, maintain, operate, be employed by, engage in, franchise, lease property to, advise, help, make loans to, or have any interest in, either directly or indirectly, any competitive business. |
| r. Non-competition covenants after the franchise is terminated or expires | Section 17(a) | For the two-year period following termination or expiration of the Franchise Agreement (and, with respect to your principals, for the two year period following the date upon which your principal ceases being a "principal" as defined in the Franchise Agreement), you and your principals will not divert any business or customer to a competitor, do or perform any act injurious to or prejudicial to the goodwill of the Marks and the System, or own, maintain, operate, be employed by, engage in, franchise, lease property to, advise, help, make loans to, or have any interest in, either directly or indirectly, any competitive business (i) within the Designated Area defined in your Franchise Agreement; or (ii) at or within 25 miles of any Bumper Business. |
| s. Modification of the agreement | Section 26(c) | Generally, no modifications without your consent, except that we may unilaterally change the scope of the competition covenants, Marks, and Manual. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the non-competition covenants remain in effect for a period of two years following the termination or expiration of the Franchise Agreement. This restriction also applies to the franchisee's principals for two years after they cease to be considered a principal, as defined in the Franchise Agreement.
During this two-year period, franchisees and their principals are prohibited from engaging in activities that could harm Bumper Man's business. Specifically, they cannot divert business or customers to competitors, perform any action that damages the goodwill associated with Bumper Man's Marks and System, or be involved in any competitive business. This includes owning, operating, being employed by, engaging in, franchising, leasing property to, advising, helping, making loans to, or having any interest in a competitive business, either directly or indirectly.
The non-competition restrictions apply within the Designated Area specified in the Franchise Agreement and also extend to a 25-mile radius around any Bumper Man Business. This means that after leaving the Bumper Man system, franchisees and their principals must avoid competitive activities within these defined geographic boundaries for the specified two-year period.
It is important to note that Bumper Man retains the right to unilaterally change the scope of the competition covenants. This means the franchisor could potentially modify the terms of the non-compete agreement, although modifications typically require franchisee consent.