Which sections of the Bumper Man Franchise Agreement address the franchisee's obligations regarding owner’s participation, management, and staffing?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 15: OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS]
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
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 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, Item 15 addresses the franchisee's obligation to participate in the actual operation of the franchise business. Specifically, it defines the role of the Operating Principal, who must have at least 51% voting ownership in the entity owning the Bumper Business and franchise.
The Operating Principal is required to devote full time and best efforts to the operation and have authority and responsibility for the day-to-day management. This indicates that Bumper Man expects a hands-on approach from its franchisees, ensuring that the owner is actively involved in the business's operations.
Furthermore, all shareholders, officers, directors, partners, members, and managers with access to confidential information must sign non-disclosure agreements. If the franchisee is married, their spouse must sign a Guaranty and Undertaking of Principal's Obligations, regardless of their interest in the franchisee entity. This highlights the importance Bumper Man places on protecting its confidential information and ensuring commitment from the franchisee and their immediate family.