Does Bumper Man have any restrictions on their right to assign the contract?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| j. Assignment of contract | Section 16(a) | names, electronic mail address, websites, social media accounts and search engines related to the operation of the Bumper Business or the System or that otherwise associates you with the Bumper Man brand to us or our designee; de identification of your Bumper Man vehicle in accordance with our then-current standards described in the Manual; and compliance with all post-termination covenants and obligations, including without limitation confidentiality, competition and indemnification. No restriction on our right to assign. |
| by us | Section 16(b) | Includes any transfer of your interest in the |
| k. | Franchise Agreement, a controlling ownership | |
| "Transfer by you | interest in you or your interest in substantially all | |
| definition | of the assets of you or the Bumper Business. | |
| l. Our approval of transfer by you | Section 16(b) | We have the right to approve all transfers, but our consent will not be unreasonably withheld. |
| m. Conditions for our approval of transfer | Section 16(d) | Except as prohibited under state law, you must be in full compliance with the Franchise Agreement and you, your affiliates and your principals must be current on all amounts owed to us or our affiliates; your proposed transferee must meet all of our then-current requirements for new franchisees and have complied with the then-current training requirements; your proposed transferee and its principals must sign our then-current form of franchise agreement and all ancillary agreements; you and your proposed transferee must have agreed to the terms of the purchase agreement; you must pay a transfer fee; you and your principals must execute a general release in favor of us and our affiliates, principals, successors, assigns, employees and agents; and other conditions that we may reasonably require from time to time as part of our transfer policies (also see r below). |
| n. Our right of first refusal to acquire your business | Section 16(g) | We can match any bona fide offer for the Bumper Business. |
| o. | Not Applicable | Not Applicable. |
| Our option to purchase | ||
| your business |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man has no restrictions on their right to assign the franchise agreement. This means Bumper Man can transfer its rights and obligations under the franchise agreement to another party without needing the franchisee's consent or meeting specific conditions. This is a standard practice in franchising, as it allows the franchisor flexibility in managing its business and assets.
However, the franchisee's ability to transfer the franchise is subject to certain conditions. A transfer by the franchisee includes transferring any interest in the Franchise Agreement, a controlling ownership interest, or interest in substantially all of the assets of the Bumper Business. Bumper Man has the right to approve all transfers by the franchisee, but consent will not be unreasonably withheld.
For a franchisee to transfer their franchise, they must meet several conditions, unless prohibited by state law. The franchisee must be in full compliance with the Franchise Agreement and current on all amounts owed to Bumper Man or its affiliates. The proposed transferee must meet all of Bumper Man's current requirements for new franchisees, including training. Both the transferee and its principals must sign Bumper Man's current franchise agreement and ancillary agreements. The franchisee and transferee must agree to the purchase terms, and the franchisee must pay a transfer fee. Additionally, the franchisee and its principals must execute a general release in favor of Bumper Man and its affiliates. Bumper Man may also require other reasonable conditions as part of its transfer policies.
Bumper Man also has the right of first refusal to acquire the franchisee's Bumper Business by matching any bona fide offer. If Bumper Man chooses to exercise this right, the franchisee would be obligated to sell the business to Bumper Man under the same terms offered by the third party. This provision allows Bumper Man to maintain control over its brand and network by strategically acquiring existing franchise locations.