To whom can the Operating Principal's interest be transferred upon death or disability in a Bumper Man franchise?
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. |
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, in the event of the death or disability of the Operating Principal, the franchisee is required to transfer the Operating Principal's interest. This transfer must occur within two months of the death or disability.
The interest can be transferred to either Bumper Man itself or to a third party. However, any third party must be approved by Bumper Man before the transfer can take place.
This provision ensures that the Bumper Man franchise continues to operate effectively even if the Operating Principal is no longer able to manage the business. By retaining the right to approve the transferee, Bumper Man maintains control over who operates the franchise and can ensure that the new operator meets their standards. For a prospective franchisee, this means understanding the importance of having a succession plan in place and ensuring that any potential transferee would be acceptable to Bumper Man.