How many renewal terms are available for a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
3. TERM OF FRANCHISE.
- (a) Initial Term. The Initial Term will commence on the Effective Date of this Agreement and expire five years thereafter, unless this Agreement is terminated as provided in Section 18.
- (b) Renewal Term. Franchisee may, at its option, continue to operate the Bumper Business under this Agreement for seven consecutive Renewal Terms, subject to any or all of the following conditions which must, at Franchisor's sole option, be met prior to and at the time of such Renewal Term.
- (i) Franchisee's Notice. Franchisee must give Franchisor Notice of its election to continue to operate the Bumper Business for a Renewal Term no later than six months before the expiration of the Initial Term.
- (ii) Good Standing. Franchisee must not be in default, nor previously have been in default, of any provision of this Agreement or any other agreement between Franchisee or any of its Affiliates and Franchisor and any of its Affiliates, and Franchisee must have substantially and timely complied with all of the terms and conditions of such agreements during the terms thereof.
- (iii) Maintenance. Franchisor may from time to time require Franchisee to engage in upgrading, renovation, repairs and maintenance of the Bumper Man vehicle and Operating Assets required for the operation of the Bumper Business and to otherwise modernize the Bumper Business to reflect the then-current Standards and image of the System as contained in the Manual or otherwise provided in writing by Franchisor.
- (iv) New Agreement and Renewal Fee. Franchisee must execute Franchisor's then-current form of franchise
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a franchisee can continue to operate the Bumper Business under the Franchise Agreement for seven consecutive renewal terms.
However, this is subject to certain conditions that Bumper Man, at its sole option, may require to be met before and during each renewal term. These conditions include providing notice to Bumper Man of the franchisee's election to renew at least six months before the end of the current term.
Additionally, the franchisee must be in good standing, without any prior or current defaults on any agreements with Bumper Man or its affiliates. Bumper Man may also require the franchisee to upgrade, renovate, repair, and maintain the Bumper Man vehicle and operating assets to meet the system's current standards and image. Finally, the franchisee must execute Bumper Man's then-current form of franchise agreement and pay the renewal fee.