Is a proposed Bumper Man transferee prohibited from having previous claims against another franchisor or affiliate?
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 Franchise Disclosure Document, a proposed transferee cannot have previous claims against another franchisor or affiliate. Specifically, the FDD states that the proposed transferee must meet Bumper Man's standards for franchisees.
To become a Bumper Man franchisee, the proposed transferee must satisfy the franchisor's minimum net worth, liquid asset, equity/debt ratio, and credit score requirements. They must also submit a complete and accurate franchise application and payment of all applicable fees, as well as complete and pass all background checks.
Furthermore, the proposed transferee must not have any felony convictions or other crimes that may adversely affect the Bumper Man marks, the system, or the franchisor. They also cannot have a pattern or practice of litigiousness. These conditions ensure that the transferee is of good character and financially stable, aligning with Bumper Man's standards for franchisees.