What right does the Franchisor grant to the Franchisee for operating a Bumper Man business?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
on with a Transfer of this Agreement.
(ttt) "Transfer Fee" means the transfer fee Franchisee must pay to Franchisor as set forth in Section 16 and in an amount equal to 20% of the purchase price of the Bumper Business set forth in the asset purchase agreement between Franchisee and the transferee.
2. GRANT OF FRANCHISE.
(a) Grant. Subject to the reserved rights described in Section 2(e), Franchisor grants to Franchisee, upon the terms and conditions in this Agreement, the right and license, and Franchisee hereby accepts the right and obligation, to operate a Bumper Business within the Designated Area.
(b) Designated Area. Franchisee must operate the Bumper Business within the Designated Area. Upon the Parties' execution of Exhibit D identifying Franchisee's Designated Area it will be deemed incorporated herein. Except as otherwise provided in this Agreement, and subject to Franchisee's full compliance with this Agreement and any other agreement between Franchisee or any of its Affiliates and Franchisor or any of its Affiliates, neither Franchisor nor any Affiliate will operate, or authorize any Person other than Franchisee to operate a Bumper Business in the Designated Area during the Term.
(c) Designated Area Limited Exclusivity. If the demographics substantially change within Franchisee's Designated Area, and Franchisor determines that the Designated Area may no longer be adequately serviced in accordance with the Standards by a single Bumper Man franchisee, Franchisor, in its reasonable business judgment, may: (i) reduce the size of the
Designated Area, so long as Franchisee's Designated Area contains a minimum of 35 Major Dealerships; or (ii) offer the opportunity for Franchisee to retain the services of a Certified Technician that satisfies Franchisor's then-current criteria for Certified Technicians and is approved by Franchisor in writing within 30 days of Franchisor's Notice of intent to modify the Designated Area. If Franchisor offers the opportunity for Franchisee to retain the services of a Certified Technician, then within 60 days following Franchisor's approval of Franchisee's Certified Technician, Franchisee and the Certified Technician will execute Franchisor's current form of Certified Technician Addendum and the Certified Technician will pay the Certified Technician Fee and complete Initial Training.
(d) Relocation. Franchisee will not relocate the Bumper Business.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the franchisor grants the franchisee the right and license to operate a Bumper Man business within a designated area, subject to the terms and conditions outlined in the franchise agreement. The franchisee also accepts the obligation to operate the Bumper Man business within this designated area.
The agreement specifies that upon the execution of Exhibit D, which identifies the franchisee's designated area, it will be incorporated into the agreement. Bumper Man agrees that neither it nor any of its affiliates will operate or authorize any other person to operate a Bumper Man business in the franchisee's designated area during the term of the agreement, provided that the franchisee fully complies with the agreement and any other agreements between the franchisee (or its affiliates) and Bumper Man (or its affiliates).
However, this exclusivity is limited. If the demographics within the franchisee's designated area substantially change, Bumper Man may reduce the size of the designated area if it determines that the area can no longer be adequately serviced by a single franchisee. To maintain the designated area, the franchisee must ensure that it contains a minimum of 35 major dealerships or retain a certified technician approved by Bumper Man. The franchisor also retains all rights inside and outside the designated area except those expressly granted to the franchisee in the agreement.