Does Bumper Man retain rights regarding Bumper Businesses outside of the restrictions on establishing another franchise within the Designated Area?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not, except as provided below, and as long as you are in full compliance with the Franchise Agreement, establish and operate or license or authorize any other party to establish or operate a Bumper Business within the Designated Area for the term of the Franchise Agreement. Except as expressly limited by the previous sentence, we and our affiliates retain all rights with respect to Bumper Businesses, the Marks, the sale of similar or dissimilar products and services and any other activities we deem appropriate whenever and wherever we desire. Specifically, we and our affiliates reserve the following rights:
- (1) Advertise and promote the Bumper Man system within and outside the Designated Area;
- (2) Operate, and license others to operate, a Bumper Business at any location outside the Designated Area, including locations that are adjacent to the Designated Area;
- (3) Establish and operate, and license others to establish and operate, any business other than a Bumper Man business, including other automotive repair businesses, under the Marks or under other marks; and
- (4) Establish and operate and license others to establish and operate any auto repair businesses or other businesses that Franchisor or its Affiliates may operate as a result of any acquisition, consolidation, or merger.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man retains significant rights regarding Bumper Businesses and related activities beyond the restrictions placed on establishing another franchise within a franchisee's Designated Area. This means that while Bumper Man agrees not to establish or authorize another Bumper Business within the franchisee's territory, this restriction is limited.
Specifically, Bumper Man and its affiliates retain all rights with respect to Bumper Businesses, the Marks, and the sale of similar or dissimilar products and services, allowing them to engage in any activities they deem appropriate, whenever and wherever they desire. This includes the right to advertise and promote the Bumper Man system both inside and outside the Designated Area, operate or license others to operate a Bumper Business at any location outside the Designated Area (even adjacent locations), and establish businesses other than Bumper Man businesses under the Marks or other marks.
Furthermore, Bumper Man reserves the right to establish or license auto repair businesses or other businesses resulting from acquisitions, consolidations, or mergers. This broad reservation of rights means that a Bumper Man franchisee's territory is protected only against direct competition from another Bumper Man franchise, but not from other business activities of the franchisor or its affiliates. A prospective franchisee should carefully consider these retained rights and how they might impact their business before investing in a Bumper Man franchise.