How many renewal terms are available to a Bumper Man franchisee?
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 the 2025 Bumper Man Franchise Disclosure Document, a franchisee can renew their agreement for up to seven consecutive renewal terms. The initial term of the franchise agreement is five years, but to be eligible for these renewals, the franchisee must meet certain conditions at the franchisor's discretion.
These conditions include providing notice to Bumper Man at least six months before the expiration of the initial term, remaining in good standing with no prior defaults on any agreements with the franchisor or its affiliates, and maintaining the Bumper Man vehicle and operating assets to reflect the current standards of the system.
Additionally, the franchisee must execute the franchisor's then-current form of franchise agreement and potentially pay a renewal fee. These stipulations ensure that franchisees continue to meet Bumper Man's standards and maintain the quality of the brand throughout the renewal periods.