Can a proposed transferee with a felony conviction become a Bumper Man franchisee?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) The proposed transferee (and its direct and indirect owners):
- (i) have sufficient business experience, aptitude, assets and financial resources to operate the Bumper Business;
- (ii) are individuals of good character and otherwise meet Franchisor's thenapplicable Standards for Bumper Man franchisees, including without limitation: (A) the proposed transferee must satisfy Franchisor's minimum net worth, liquid asset, equity/debt ratio and credit score requirements; (B) the proposed transferee must submit a complete and accurate franchise application and payment of all applicable fees; (C) the proposed transferee must complete and pass all background checks; (D) there must not be any felony convictions or other crimes of proposed transferee that may adversely affects the Marks, the System or the Franchisor, and there must not be a pleading of no contest to any other of these by the proposed transferee; (E) there have been no previous claims by the proposed transferee against another franchisor or affiliate; (F) the operation or ownership of the Bumper Business or proposed transferee's entity will not violate any contracts with any third party; and (G) the proposed transferee must not have a pattern or practice of litigiousness;
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, a proposed transferee with a felony conviction may not be able to become a Bumper Man franchisee. The FDD states that the proposed transferee must meet Bumper Man's standards for franchisees. One of these standards is that there must not be any felony convictions or other crimes of the proposed transferee that may adversely affect the Marks, the System, or Bumper Man. Additionally, there must not be a pleading of no contest to any of these by the proposed transferee.
This requirement ensures that all Bumper Man franchisees maintain a certain level of integrity and do not pose a risk to the brand's reputation or the overall system. The franchisor has the right to protect its brand and ensure that its franchisees meet certain standards of conduct. This is a common practice in franchising, as the success of one franchisee can impact the entire system.
However, the clause includes a subjective element: the felony conviction must be one that "may adversely affect the Marks, the System or the Franchisor". This implies that Bumper Man may consider the nature and severity of the felony when evaluating a potential transferee. A prospective transferee in this situation should be prepared to provide full transparency and documentation regarding the conviction and demonstrate why it should not be considered a barrier to owning a Bumper Man franchise. It is important to note that the franchisor has the final say in whether or not to approve a transfer.