What rights are reserved to Bumper Man that might affect my exclusive territory?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
e Agreement and the Manual.
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.
You will not receive an exclusive territory. You may face competition from other businesses, from outlets that we own or from other channels of distribution or competitive brands that we control. As of the issuance date of this disclosure document, we do not own any outlets or control any other channels of distribution or competitive brands. In addition, you will receive a Designated Area in which we will not operate or grant others the right to operate a Bumper Man business, subject to the conditions set forth in this Item 12.
We may, at our option, solicit orders for bumper repair services in any area, including without limitation your Designated Area, provided that if such solicitations are accepted by customers in your Designated Area, then we will refer the customer to you to provide such bumper repair services. We are not required to compensate you for soliciting such services in your Designated Area. The restrictions on our right to operate in your Designated Area do not apply to any Bumper Business existing on the date the Franchise Agreement is signed.
Because the Bumper Man business is based on an owner-operator model where the operator does not have personnel, a Bumper Man franchisee may not operate a Bumper Man business in more than one Designated Area, except as authorized by us in limited circumstances. In addition, you will not receive a right of first refusal or guaranteed right to acquire additional Designated Areas.
We occasionally negotiate national account status with wholesale auto auction houses, rental car chains, automobile repair chains and other businesses that maintain fleets of vehicles. We may at our option offer you the opportunity to service a local auction or repair facility outside your Designated Area as they come available through our national account status.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, while franchisees are granted a designated area, it is not an exclusive territory, and Bumper Man retains several rights that could impact a franchisee's business within that area. Bumper Man can advertise and promote the Bumper Man system both inside and outside of a franchisee's designated area. They can also operate or license others to operate a Bumper Man business outside the designated area, even in locations adjacent to it. Furthermore, Bumper Man has the right to establish and operate other businesses, including other automotive repair businesses, under the Bumper Man marks or other marks, and can also establish or license others to operate auto repair businesses resulting from acquisitions, consolidations, or mergers.
Bumper Man also retains the right to solicit orders for bumper repair services in any area, including a franchisee's designated area. If these solicitations are accepted by customers within the franchisee's area, Bumper Man will refer the customer to the franchisee for service, but Bumper Man is not required to compensate the franchisee for soliciting these services. This means that while a franchisee may be providing the actual repair service, Bumper Man can actively market and generate leads within that territory without directly benefiting the franchisee financially.
Additionally, Bumper Man may negotiate national account status with large businesses such as auto auction houses or rental car chains. As these opportunities become available, Bumper Man may offer franchisees the chance to service local facilities outside of their designated area. However, franchisees do not have a guaranteed right to these opportunities, and they are offered on an "as needed" basis. A franchisee may also request permission to solicit or accept orders outside their designated area, but they cannot directly market or advertise within another franchisee's designated area. If a franchisee does provide services outside their designated area, they must sign an amendment to the Franchise Agreement outlining the terms and conditions of such services.