Is Bumper Man required to compensate a franchisee for soliciting services in the franchisee's Designated Area?

According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man is not required to compensate a franchisee for soliciting services within the franchisee's designated area. However, if Bumper Man solicits orders for bumper repair services in a franchisee's designated area and those solicitations are accepted, Bumper Man will refer the customer to the franchisee to provide the repair services.

This means that while Bumper Man retains the right to market and solicit services even within a franchisee's territory, they are obligated to pass on any resulting business from those solicitations to the franchisee. This setup allows Bumper Man to maintain control over marketing efforts and potentially leverage national accounts, while still ensuring that franchisees benefit from those efforts within their designated areas.

It's important to note that this arrangement does not apply to any Bumper Man business existing on the date the Franchise Agreement is signed. This suggests that pre-existing businesses may have different terms or agreements regarding territory and customer allocation. A prospective franchisee should clarify the specifics of these pre-existing businesses and their potential impact on the franchisee's operations during their due diligence.