What specific representations and warranties are included in Section 10 of the Bumper Man franchise agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
10. REPRESENTATIONS, WARRANTIES, AND COVENANTS.
(a) Business Entity Franchisee.
- (i) Franchisee warrants that it is duly organized or formed and validly existing in good standing under the laws of the jurisdiction of its incorporation or formation; it has the necessary consents, approvals, licenses and/or permits to carry out the business activities contemplated by this Agreement; it will furnish such other information about its organization or formation as Franchisor may reasonably request to confirm the same; and the execution and delivery of this Agreement has been duly authorized by it.
- (ii) Franchisee will disclose to Franchisor all Principals holding any Equity Interests in Franchisee. Franchisee will provide Franchisor with such financial information as Franchisor may periodically request from Franchisee and each Principal, including copies of annual financial statements or tax returns.
- (iii) Each Principal will execute and deliver to Franchisor a Guaranty and Undertaking of Obligations in the form attached hereto as Exhibit B. Any spouse or relative of Franchisee who Franchisor has authorized to perform any obligations relating to the Bumper Business will also execute and deliver to Franchisor a Guaranty and Undertaking of Obligations.
- (b) Ideas and Concepts. From time to time in connection with the operation of the Bumper Business, Franchisee may create or develop Ideas and Concepts that Franchisee believes will improve the System or the Bumper Man businesses. Franchisee will promptly disclose such Ideas and Concepts to Franchisor and will not implement such Ideas and Concepts without the prior written approval of Franchisor. Franchisor may elect to use or adopt such Ideas and Concepts if Franchisor determines that such adoption or use will benefit the System. If Franchisor uses or adopts any of such Ideas and Concepts, they will be deemed to be part of the System. Franchisee will be recognized as Franchisor determines appropriate for such Ideas and Concepts. All Ideas
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, Section 10 of the franchise agreement outlines specific representations, warranties, and covenants made by the franchisee. For a business entity franchisee, these include assurances that the entity is properly organized and in good standing under the laws of its jurisdiction. The franchisee also warrants that it possesses all necessary consents, approvals, licenses, and permits required to conduct the business activities as outlined in the agreement. Furthermore, the franchisee commits to providing any additional information about its organization or formation that Bumper Man may reasonably request to confirm its status. The franchisee also confirms that the execution and delivery of the franchise agreement have been duly authorized.
Additionally, the franchisee is obligated to disclose all principals holding equity interests in the franchise to Bumper Man. The franchisee must also furnish financial information as periodically requested by Bumper Man, including annual financial statements or tax returns from both the franchisee and its principals. Each principal is required to execute and deliver a Guaranty and Undertaking of Obligations, as detailed in Exhibit B of the franchise agreement. This requirement extends to any spouse or relative of the franchisee authorized by Bumper Man to perform obligations related to the Bumper Business.
Moreover, the franchise agreement addresses the handling of new ideas and concepts developed by the franchisee. If a franchisee creates or develops ideas to improve the Bumper Man system, they must promptly disclose these ideas to Bumper Man and cannot implement them without prior written approval. Bumper Man has the option to use or adopt these ideas if they benefit the system, and if adopted, the ideas become part of the Bumper Man system. The franchisee will receive recognition for these ideas at Bumper Man's discretion. These stipulations ensure that Bumper Man maintains control over its system while also considering improvements suggested by franchisees.