Is Bumper Man permitted to establish businesses other than Bumper Man businesses under the Bumper Man Marks?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
of the Franchise Agreement. Except as expressly limited by the previous sentence, we and our affiliates retain all rights with respect to Bumper Businesses, the Marks, the sale of similar or dissimilar products and services and any other activities we deem appropriate whenever and wherever we desire. Specifically, we and our affiliates reserve the following rights:
- (1) Advertise and promote the Bumper Man system within and outside the Designated Area;
- (2) Operate, and license others to operate, a Bumper Business at any location outside the Designated Area, including locations that are adjacent to the Designated Area;
- (3) Establish and operate, and license others to establish and operate, any business other than a Bumper Man business, including other automotive repair businesses, under the Marks or under other marks;
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man retains the right to establish businesses other than Bumper Man businesses under the Bumper Man Marks. Specifically, Bumper Man and its affiliates reserve the right to establish and operate any business other than a Bumper Man business, including other automotive repair businesses, under the Marks or under other marks.
This means that as a Bumper Man franchisee, you may face competition from other businesses that Bumper Man or its affiliates establish, even if those businesses operate under the same Marks. These could include other automotive repair businesses or any other type of business Bumper Man deems appropriate. This is a significant consideration for prospective franchisees, as it highlights that the franchise agreement does not grant exclusive rights to the Marks within the designated area for all types of businesses.
Furthermore, Bumper Man also reserves the right to establish and operate auto repair businesses or other businesses that they or their affiliates may operate as a result of any acquisition, consolidation, or merger. This clause broadens the scope of potential competition, as it includes businesses that Bumper Man may acquire in the future. Therefore, franchisees should be aware that the competitive landscape could change due to Bumper Man's strategic decisions, such as acquisitions or mergers, potentially impacting their business.
Prospective franchisees should carefully consider the implications of these reserved rights and how they might affect their business. It would be prudent to discuss with Bumper Man the types of businesses they might establish under the Marks and the potential impact on franchisees. Understanding Bumper Man's long-term strategy and its potential impact on the franchise network is crucial for making an informed investment decision.