What is the role of the Operating Principal in a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
The Operating Principal is the person that has primary responsibility for the operation of the Bumper Business. The Operating Principal must have at least a 51% voting ownership interest in the entity that owns the Bumper Business and the franchise, devote full time and best efforts to the operation of the Bumper Business and have authority and responsibility for the day-to-day management and operation of the Bumper Business.
All shareholders, officers, directors, partners, members, and all managers and other personnel that have access to our Confidential Information must sign non-disclosure agreements in a form we require.
Your principals will be individually and jointly and severally bound by all of your obligations and the obligations of principals under the Franchise Agreement by signing the Guaranty and Undertaking of Principal's Obligations, attached to the Franchise Agreement as Exhibit B. If you are married, your spouse must sign a Guaranty and Undertaking of Principal's Obligations, regardless of whether she has any interest in the franchisee entity that you establish.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 32–33)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the Operating Principal is the individual primarily responsible for running the Bumper Business. This person must have at least 51% voting ownership in the entity that owns the Bumper Business and the franchise. They are required to dedicate their full time and best efforts to managing the business.
This means that the Operating Principal has the authority and responsibility for the day-to-day management and operation of the Bumper Man franchise. This ensures that someone with a significant stake in the company is actively involved in its operations. This requirement is fairly common in franchising, as franchisors want to ensure that franchisees are committed to the business and actively managing it according to the franchisor's standards.
Furthermore, all shareholders, officers, directors, partners, members, managers, and other personnel with access to confidential information must sign non-disclosure agreements. The principals are also bound by the obligations under the Franchise Agreement through a Guaranty and Undertaking of Principal's Obligations. If the franchisee is married, their spouse must also sign this guaranty, regardless of their interest in the franchisee entity. This highlights the importance Bumper Man places on protecting its confidential information and ensuring the commitment of all involved parties.
These requirements ensure that Bumper Man franchisees are actively managed by a responsible and invested party, and that all individuals with access to sensitive information are bound to protect it. Prospective franchisees should carefully consider these obligations and ensure they have a suitable Operating Principal who meets these criteria.