What section of the Bumper Man franchise agreement specifies the term of the franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Agreement | Summary |
|---|---|---|
| a. Term of the franchise | Section 3(a) | Five years. |
| b. Renewal or extension of | Section 3(b) | Seven additional five-year terms. |
| term | ||
| c. Requirements for you to renew or extend | Section 3(b) | Your renewal right permits you to remain as a franchisee after the initial term of your Franchise Agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal, including signing our then-current form of franchise agreement, which |
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, the term of the franchise is specified in Section 3(a) of the franchise agreement. This section states that the initial term of the Bumper Man franchise is five years.
Additionally, Section 3(b) outlines the possibility of renewal or extension of the franchise term. A Bumper Man franchisee has the option to renew for seven additional five-year terms, allowing for a potentially long-term business relationship with the franchisor.
However, to exercise this renewal option, Section 3(b) also states that the franchisee must meet all required conditions, including signing the then-current form of the Bumper Man franchise agreement. This is a fairly standard practice in franchising, as it allows the franchisor to update the agreement to reflect changes in the business or legal landscape. Prospective franchisees should carefully review the renewal requirements and understand that the terms of the renewed agreement may differ from the original.