What are the requirements to be considered an 'Operating Principal' for a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
hisee's Operating Principal) will meet its obligations under this Agreement in accordance with the Standards or otherwise in writing by Franchisor. Franchisee or its Operating Principal, as applicable, will reside within the Designated Area. Franchisee and Operating Principal (if applicable) will take such steps as are necessary to ensure that its Operating Principal preserves good Customer relations and fully complies with Applicable Law.
(a) Operating Principal. If Franchisee is an Entity, Franchisee must designate and retain at all times an Operating Principal who will manage the Bumper Business in accordance with the Standards, including without limitation completion of Initial Training to Franchisor's satisfaction, as described in Section 5. The Operating Principal will devote full time best efforts to the operation of the Bumper Business and may not be involved in or supervise any other auto repair business or concept (including without limitation any Competitive Business) outside the Bumper Business. If, during the Term, the
Operating Principal is not able to continue to serve in such capacity or no longer qualifies to act as such in accordance with this Section 11(a), Franchisee must promptly notify Franchisor in writing and request Franchisor's consent to Transfer in accordance with Sections 16(b)-(f). Any failure to comply with the requirements of this Section 11(a) will be deemed an Event of Default under this Agreement.
(b) Other Personnel. Franchisee's Operating Principal is the sole Person authorized to operate the Bumper Business unless otherwise approved by Franchisor in writing. If Franchisor authorizes Franchisee to utilize Personnel (i.e.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
Based on the 2025 Bumper Man FDD, the Operating Principal plays a crucial role in the franchise operations. If the franchisee is an entity, the Operating Principal is the individual responsible for the Bumper Man business. According to Section 11(a), if the Operating Principal can't continue in their role or no longer meets the qualifications, the franchisee must inform Bumper Man in writing and seek approval for a transfer. Failing to meet these requirements can result in an event of default under the Franchise Agreement.
Furthermore, the FDD states that the Operating Principal is the only person authorized to operate the Bumper Man business unless Bumper Man provides written approval for other personnel. If Bumper Man approves the use of other personnel, such as a spouse, child, or parent, the franchisee is responsible for all employment-related decisions, including hiring, firing, and compensation. The franchisee must ensure that these personnel comply with the terms of the Franchise Agreement and the established standards.
In summary, the Operating Principal must maintain their qualifications and continue in their role, unless a transfer is approved by Bumper Man. They are primarily responsible for the Bumper Man business's operations, and any changes or additional personnel must adhere to the standards set forth in the Franchise Agreement. Prospective franchisees should carefully review Section 11(a) of the Franchise Agreement to fully understand the requirements and obligations related to the Operating Principal.