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What is the relationship between the Franchise Agreement and the Certified Technician Addendum for a Bumper Man franchise?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

This Certified Technician Addendum to Bumper Man Franchise Agreement ("Addendum") is effective as of, 20 (the "Effective Date") by and among Bumper Man, Inc. ("Franchisor"), and ("Franchisee"), ("Principal") and ("Certified Technician"). Franchisor, Franchisee, Principal and Certified Technician are collectively referred to as "Parties" in this Addendum.
1.
INTRODUCTION. Franchisor and Franchisee are parties to the Bumper Man Franchise
Agreement dated, 20 (the "Franchise Agreement") pursuant to which Franchisee
operates
a
Bumper
Man
bumper
repair
business
at
("Bumper Business").
Franchisee has
requested Franchisor's consent to retain the services of a Certified Technician to perform
services within the Designated Area on, 20 ("Commencement Date") to maximize
the number of customers serviced by the Bumper Business.
2.
DEFINITIONS.
All capitalized terms used herein but not defined shall have the
meaning given to such terms in the Franchise Agreement.
3.
CONDITIONS FOR APPROVAL. Franchisor will grant the limited right to Certified
Technician to perform the services in the Designated Area during the Term of the Franchise
Agreement (unless terminated in accordance with Section 18), as further set forth in Section 4 of
this Addendum, subject to Franchisee's and Certified Technician's satisfaction of the conditions
set forth in this Section 3 prior to or concurrently with the proposed Commencement Date:
(a)
Franchisee and its Principals have paid all Continuing Service Fees and all other amounts
owed to Franchisor and its Affiliates, submitted all required Reports and other statements
and data and otherwise are in full compliance with this Agreement as of the date of
Franchisee's
request
for
approval
of
the
Certified
Technician
and
as
of
the
Commencement Date.
(b)
The proposed Certified Technician: (1) has sufficient business experience, aptitude,
assets and financial resources to operate the Bumper Business; (2) meets Franchisor's
then-applicable standards for Bumper Business franchisees set forth in the Manual; (3)
and each of the Persons holding a direct or indirect Equity Interest in Certified
Technician (if Certified Technician is an Entity) is not engaged and will not engage in the
operation or ownership of a business offering bumper repair services or any competitor of
Bumper Man, 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 Commencement
Date.

Source: Item 23 — RECEIPTS (FDD pages 45–180)

What This Means (2025 FDD)

According to the 2025 Bumper Man Franchise Disclosure Document, the Certified Technician Addendum is an extension of the existing Franchise Agreement, outlining the terms under which a franchisee can employ a certified technician to enhance their Bumper Man business operations. The addendum does not supersede the original agreement; instead, it works in conjunction with it. All capitalized terms used in the addendum, but not specifically defined within it, carry the same meanings as defined in the original Franchise Agreement. This ensures consistency and clarity in the contractual obligations of all parties involved.

The Certified Technician Addendum ensures that the certified technician is bound by many of the same obligations and standards as the franchisee. The certified technician must adhere to the stipulations outlined in the Franchise Agreement, including those related to representations, warranties, covenants, insurance requirements, restrictive covenants, and indemnification. The franchisee remains responsible for the technician's performance and any breaches of either the Franchise Agreement or the addendum. This reinforces the franchisee's role in supervising the technician and maintaining the standards of the Bumper Man brand.

The addendum has a term of two years, but it terminates immediately upon the expiration, termination, or transfer of the Franchise Agreement. The certified technician has the option to renew the addendum for two consecutive two-year terms, provided they meet the franchisor's conditions. Furthermore, if the franchisor elects not to exercise its right of first refusal to purchase the Bumper Man business, the certified technician has the option to purchase the business by entering into the franchisor's current form of Franchise Agreement and paying the initial franchise fee, less the Certified Technician Fee. This highlights the interconnected nature of the agreements and the opportunities available to the certified technician within the Bumper Man franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.