Must a proposed Bumper Man transferee cooperate with reasonable due diligence requests?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) The proposed transferee (and its direct and indirect owners): (1) have sufficient business experience, aptitude , assets and financial resources to operate the Bumper Business; (2) are individuals that meet Franchisor's then-applicable Standards for Bumper Business franchisees; (3) are not engaged and will not engage in the operation or ownership of a Competitive Business, and will engage only in the operation of the Bumper Business; and (4) will cooperate with reasonable due diligence requests made by Franchisor promptly thereafter and if additional time is reasonably needed, then prior to the proposed effective date of the Transfer.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a proposed transferee must cooperate with reasonable due diligence requests made by Bumper Man. Specifically, the transferee must cooperate promptly with these requests. If additional time is reasonably needed, the transferee must cooperate prior to the proposed effective date of the transfer.
This requirement ensures that Bumper Man can thoroughly assess the qualifications and suitability of the proposed transferee before approving the transfer of the franchise. The due diligence process allows Bumper Man to maintain its brand standards and protect the overall integrity of the franchise system.
For a prospective Bumper Man franchisee looking to sell their business, it's crucial to understand that the approval of a transfer is contingent upon the proposed transferee's willingness to fully cooperate with Bumper Man's due diligence process. Failure to cooperate can result in the denial of the transfer, potentially jeopardizing the sale of the franchise.