What does the Principal of a Bumper Man franchise personally guarantee to the Franchisor?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
For so long as you are Franchisee's Principal under the Franchise Agreement and for a period of two years from the date you cease to be Franchisee's Principal, you will not, either directly or indirectly, individually or through, on behalf of, or in conjunction with any other person:
- (i) Own, maintain, operate, be employed by, engage in, franchise, lease property to, advise, help, make loans to, or have any interest in, either directly or indirectly, any Competitive Business;
- (ii) Divert or attempt to divert any actual or prospective business or customer of the Bumper Business to any Competitive Business, by direct or indirect inducement or otherwise; or
- (iii) Perform, directly, any or indirectly, any other act injurious to or prejudicial to the goodwill associated with the Marks and the System
The above covenants apply exclusively in the United States of America during the time that you serve as Principal for the Bumper Business and within 25 miles of any then-existing Bumper Man business during the two-year period following the date you cease to be the Principal of the Bumper Business.
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.
Principal represents and warrants that the following is a complete and accurate list of all Principals of Franchisee and a full description of the nature and extent of each Principal's Equity Interest in Franchisee. Franchisee, and Principal as to its Equity Interest, represents and warrants that Principal is the sole and exclusive legal and beneficial owner of its Equity Interest in Franchisee, free and clear of all liens, restrictions, agreements and encumbrances of any kind or nature, other than those required or permitted by this Guaranty.
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 provides a personal guarantee to the Franchisor regarding certain business conduct. Specifically, for as long as they are the Franchisee's Principal and for two years after ceasing to be the Principal, they agree not to engage in activities that could harm Bumper Man's business interests. This includes not owning, operating, or being involved with any competitive business, nor diverting or attempting to divert customers to a competitive business. They also agree not to perform any actions that could be harmful to the goodwill associated with the Bumper Man brand and system. These restrictions apply within the United States while they are the Principal and within 25 miles of any existing Bumper Man business for two years after they cease being the Principal.
This guarantee is a condition of the Franchisor entering into the Franchise Agreement. The Principal acknowledges that the Franchisor would not grant the franchise rights without this guarantee. This obligation remains in effect even after the Principal's death, binding their personal representatives. Additionally, the guarantee continues to be enforceable regardless of any changes to the name or structure of either the Franchisor or the Franchisee.
The Principal also confirms that they have provided a complete and accurate list of all Principals of the Franchisee, including a full description of each Principal's Equity Interest in the Franchisee. They warrant that they are the sole and exclusive legal and beneficial owner of their Equity Interest in the Franchisee, free from any liens, restrictions, agreements, or encumbrances, except as permitted by the Guaranty itself. This ensures that the Franchisor has recourse to the Principal's assets and equity in case of any breach of the Franchise Agreement or the guarantee.