Is the Principal of a Bumper Man franchise bound by the covenants, representations, warranties, and agreements outlined in Section 1 of the Agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Principal hereby personally and unconditionally guarantees to Franchisor and its successors and assigns, for the Term and afterward as provided in the Agreement, that Certified Technician will punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement.
Principal represents that each and every representation of Certified Technician made in connection with the Agreement is true, correct and complete in all respects as of the time given and as of the time of the undersigned Principal(s)' execution of this Guaranty.
Principal acknowledges that it is included in the term "Principal" as described in
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the Principal of a Bumper Man franchise is required to execute a Guaranty and Undertaking of Obligations, as detailed in Exhibit B of the franchise agreement. This means the Principal is legally bound to ensure the Certified Technician fulfills all obligations, agreements, and covenants outlined in the agreement. This obligation extends for the duration of the agreement's term and afterward, as specified within the agreement.
The Principal's commitment includes guaranteeing that all representations made by the Certified Technician are accurate and complete. This obligation is a condition for the Franchisor to enter into the agreement, emphasizing the importance of the Principal's role in ensuring compliance and performance. The Principal's guarantee remains in effect even in the event of their death, binding their personal representatives to the terms.
Furthermore, the Principal is subject to certain restrictions, including non-compete clauses. For the duration they serve as the Principal and for two years after ceasing to be the Principal, they are prohibited from engaging in any competitive business within the United States or within 25 miles of any existing Bumper Man business. This includes owning, operating, or being involved with any business that competes with Bumper Man. They are also prohibited from diverting or attempting to divert any business or customers away from Bumper Man. These restrictions are designed to protect Bumper Man's interests and goodwill.
In summary, the Principal's role is critical in ensuring the success and compliance of the Bumper Man franchise. By signing the Guaranty and Undertaking of Obligations, the Principal assumes significant legal and financial responsibilities, including guaranteeing the performance of the Certified Technician and adhering to non-compete restrictions. Prospective franchisees should carefully review these obligations and understand the implications before entering into the franchise agreement.