What is the obligation of the Franchisee to be in full compliance with the Franchise Agreement as of the Commencement Date for a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Certified Technician Addendum to Bumper Man Franchise Agreement ("Addendum") is effective as of, 20 (the "Effective Date") by and among Bumper Man, Inc. ("Franchisor"), and ("Franchisee"), ("Principal") and ("Certified Technician"). Franchisor, Franchisee, Principal and Certified Technician are collectively referred to as "Parties" in this Addendum. |
|---|
| 1. |
| INTRODUCTION. Franchisor and Franchisee are parties to the Bumper Man Franchise |
| Agreement dated, 20 (the "Franchise Agreement") pursuant to which Franchisee |
| operates |
| a |
| Bumper |
| Man |
| bumper |
| repair |
| business |
| at |
| ("Bumper Business"). |
| Franchisee has |
| requested Franchisor's consent to retain the services of a Certified Technician to perform |
| services within the Designated Area on, 20 ("Commencement Date") to maximize |
| the number of customers serviced by the Bumper Business. |
| 2. |
| DEFINITIONS. |
| All capitalized terms used herein but not defined shall have the |
| meaning given to such terms in the Franchise Agreement. |
| 3. |
| CONDITIONS FOR APPROVAL. Franchisor will grant the limited right to Certified |
| Technician to perform the services in the Designated Area during the Term of the Franchise |
| Agreement (unless terminated in accordance with Section 18), as further set forth in Section 4 of |
| this Addendum, subject to Franchisee's and Certified Technician's satisfaction of the conditions |
| set forth in this Section 3 prior to or concurrently with the proposed Commencement Date: |
| (a) |
| Franchisee and its Principals have paid all Continuing Service Fees and all other amounts |
| owed to Franchisor and its Affiliates, submitted all required Reports and other statements |
| and data and otherwise are in full compliance with this Agreement as of the date of |
| Franchisee's |
| request |
| for |
| approval |
| of |
| the |
| Certified |
| Technician |
| and |
| as |
| of |
| the |
| Commencement Date. |
| (b) |
| The proposed Certified Technician: (1) has sufficient business experience, aptitude, |
| assets and financial resources to operate the Bumper Business; (2) meets Franchisor's |
| then-applicable standards for Bumper Business franchisees set forth in the Manual; (3) |
| and each of the Persons holding a direct or indirect Equity Interest in Certified |
| Technician (if Certified Technician is an Entity) is not engaged and will not engage in the |
| operation or ownership of a business offering bumper repair services or any competitor of |
| Bumper Man, and will engage only in the operation of the Bumper Business; and (4) will |
| cooperate with reasonable due diligence requests made by Franchisor promptly thereafter |
| and if additional time is reasonably needed, then prior to the proposed Commencement |
| Date. |
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, a franchisee's obligation to be in full compliance with the Franchise Agreement as of the Commencement Date is primarily detailed within the Certified Technician Addendum. Specifically, if a franchisee intends to utilize a Certified Technician, both the franchisee and their principals must have satisfied all financial obligations, including Continuing Service Fees and any other amounts owed to Bumper Man and its affiliates.
Furthermore, the franchisee must have submitted all required reports, statements, and data, demonstrating overall compliance with the Franchise Agreement. This requirement extends not only to the date of the franchisee's request for approval of the Certified Technician but also up to the Commencement Date itself.
In essence, Bumper Man mandates that franchisees maintain good standing in all aspects of their agreement before being permitted to bring on a Certified Technician. This ensures that all parties involved are committed to upholding the standards and financial responsibilities associated with the Bumper Man franchise.