Does Bumper Man have the right to approve all transfers by the franchisee?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
ellation of telephone numbers, domain |
| 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; |
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 retains the right to approve all transfers initiated by the franchisee. However, this approval will not be unreasonably withheld, meaning Bumper Man must have a legitimate business reason to deny a transfer request. This provision is designed to ensure that any new franchisee meets Bumper Man's standards and is capable of maintaining the brand's reputation and operational consistency.
Several conditions must be met for Bumper Man to approve a transfer. The franchisee must be in full compliance with the Franchise Agreement, and all outstanding amounts owed to Bumper Man or its affiliates must be current. The proposed transferee must meet all of Bumper Man's then-current requirements for new franchisees, including completing the necessary training. Additionally, both the franchisee and the proposed transferee must sign Bumper Man's current form of franchise agreement and any related ancillary agreements. A transfer fee must be paid, and both the franchisee and their principals must execute a general release in favor of Bumper Man and its affiliates.
Furthermore, Bumper Man has the right of first refusal to acquire the Bumper Business, meaning they can match any legitimate offer made by a potential buyer. This allows Bumper Man to maintain control over the franchise's ownership and direction. In the event of the death or disability of the Operating Principal, the franchisee must transfer the Operating Principal's interest to Bumper Man or a third party approved by Bumper Man within two months. These transfer conditions are typical in franchising, as they protect the franchisor's brand and ensure continuity and quality within the franchise system.