What section of the Bumper Man Franchise Agreement addresses non-competition covenants during the term of the franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the franchise | Section 17(a) | You and your principals will not divert any business or customer to a competitor, perform directly or indirectly any act injurious or prejudicial to the goodwill of the Marks and System, and you will not own, maintain, operate, be employed by, engage in, franchise, lease property to, advise, help, make loans to, or have any interest in, either directly or indirectly, any competitive business. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, Section 17(a) of the Franchise Agreement outlines the non-competition covenants that apply while the franchise is active. This section stipulates that franchisees and their principals are prohibited from engaging in any activities that could harm Bumper Man's business interests.
Specifically, franchisees cannot divert customers or business to competitors, nor can they take any action that could damage the goodwill associated with Bumper Man's brand and system. Furthermore, franchisees (and their principals) are restricted from owning, operating, being employed by, or having any financial interest in any competitive business, whether directly or indirectly. This includes activities such as franchising, leasing property to, advising, helping, or making loans to a competing business.
These non-competition covenants are designed to protect Bumper Man's market position and proprietary business methods. Prospective franchisees should carefully review Section 17(a) to fully understand the scope of these restrictions and how they might impact their business activities during the term of the franchise agreement. Understanding these restrictions is crucial for avoiding potential breaches of contract and ensuring a successful, compliant operation of their Bumper Man franchise.