Does the Principal of a Bumper Man franchise guarantee obligations for the entire Term of the Franchise Agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Principal further acknowledges and agrees as follows:
- (a) it has read the terms and conditions of the Agreement and acknowledges that the execution of this Guaranty is in partial consideration for, and a condition to Franchisor's execution of the Agreement, and Franchisor would not have granted such rights without the execution of this Guaranty by each of the undersigned
- (b) this Guaranty will remain in force notwithstanding the death of the undersigned, and will be binding on the undersigned's personal representatives; and
- (c) this Guaranty will continue and will be enforceable notwithstanding any change in the name or the constitution of Franchisor or Franchisee.
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 as a condition for the franchisor to grant franchise rights. This guaranty remains in force even after the death of the Principal and is binding on the Principal's personal representatives. Additionally, the guaranty continues and remains enforceable regardless of any changes to the name or structure of either the franchisor or the franchisee.
The Principal's obligations extend beyond just monetary commitments. They also include the responsibility to adhere to specific actions or to refrain from certain activities as outlined in the Franchise Agreement. This encompasses various aspects of the business, such as representations, warranties, covenants, insurance requirements, restrictive covenants, and indemnification obligations. The Principal essentially agrees to be bound by every provision within the Franchise Agreement, ensuring comprehensive compliance.
Furthermore, for a specified period, the Principal is restricted from engaging in any competitive business that could negatively impact the Bumper Man franchise. This restriction applies during the term of their involvement as a Principal and extends for two years after they cease to hold that position. The geographical scope of this restriction is limited to the United States during their tenure as Principal and within 25 miles of any existing Bumper Man business for the subsequent two-year period. These measures are designed to protect the Bumper Man system and its goodwill.