What sections of the Bumper Man Franchise Agreement are Principals bound by?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
For so long as you are Franchisee's Principal under the Franchise Agreement and for a period of two years from the date you cease to be Franchisee's Principal, you will not, either directly or indirectly, individually or through, on behalf of, or in conjunction with any other person:
- (i) 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;
- (ii) Divert or attempt to divert any actual or prospective business or customer of the Bumper Business to any Competitive Business, by direct or indirect inducement or otherwise; or
- (iii) Perform, directly, any or indirectly, any other act injurious to or prejudicial to the goodwill associated with the Marks and the System
The above covenants apply exclusively in the United States of America during the time that you serve as Principal for the Bumper Business and within 25 miles of any then-existing Bumper Man business during the two-year period following the date you cease to be the Principal of the Bumper Business.
Principal further acknowledges and agrees as follows:
- (a) it has read the terms and conditions of the Agreement and acknowledges that the execution of this Guaranty is in partial consideration for, and a condition to Franchisor's execution of the Agreement, and Franchisor would not have granted such rights without the execution of this Guaranty by each of the undersigned
- (b) this Guaranty will remain in force notwithstanding the death of the undersigned, and will be binding on the undersigned's personal representatives; and
- (c) this Guaranty will continue and will be enforceable notwithstanding any change in the name or the constitution of Franchisor or Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, Principals are bound by specific sections of the Franchise Agreement, particularly concerning competitive business activities and confidentiality. For as long as they are a Principal and for two years after ceasing to be one, they cannot engage in any Competitive Business, divert customers, or perform any act that damages the goodwill associated with the Bumper Man brand. These restrictions apply within the United States during their tenure as Principal and within 25 miles of any Bumper Man business for two years after they cease to be a Principal.
Principals also acknowledge that their agreement is a condition for the Franchisor to execute the Franchise Agreement. This obligation remains in force even after the Principal's death and is binding on their personal representatives. Furthermore, the agreement remains enforceable despite any changes in the name or structure of either the Franchisor or Franchisee.
Additionally, Principals must protect the confidential information provided by Bumper Man. They are prohibited from using, duplicating, or disclosing this information unless expressly authorized in writing. They must also implement measures to maintain confidentiality, at least as strict as those used for their own confidential information. This obligation extends to advisors, representatives, agents, and personnel who receive confidential information, ensuring it is used solely in connection with their roles with the Bumper Man business.