Can the proposed transferee of a Bumper Man franchise operate a Competitive Business?
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 cannot operate or own a Competitive Business. The document states that the proposed transferee and its direct and indirect owners must not be engaged in, nor will they engage in, the operation or ownership of a Competitive Business. They are required to engage only in the operation of the Bumper Man business.
This condition is part of the requirements that must be met before or concurrently with the proposed effective date of the transfer. These conditions also include having sufficient business experience, aptitude, assets, and financial resources to operate the Bumper Man business, as well as meeting Bumper Man's standards for franchisees.
This restriction ensures that the transferee is fully committed to the Bumper Man franchise and will not divert resources or attention to a competing business. For a prospective franchisee, this means that if they plan to transfer their franchise in the future, the potential buyer must not be involved in any competing business ventures. This could limit the pool of potential buyers and should be carefully considered before investing in a Bumper Man franchise.