What standards must the proposed transferee meet to operate a Bumper Man business?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) The proposed transferee (and its direct and indirect owners): (1) have sufficient business experience, aptitude , assets and financial resources to operate the Bumper Business; (2) are individuals that meet Franchisor's then-applicable Standards for Bumper Business franchisees; (3) are not engaged and will not engage in the operation or ownership of a Competitive Business, and will engage only in the operation of the Bumper Business; and (4) will cooperate with reasonable due diligence requests made by Franchisor promptly thereafter and if additional time is reasonably needed, then prior to the proposed effective date of the Transfer.
- (iii) The transferee and its owners as specified by Franchisor will complete the Initial Training.
- (iv) The transferee and each of its owners specified by Franchisor will agree to be bound by all of the terms and conditions of Franchisor's then-current form of franchise agreement and sign the ancillary agreements and documents Franchisor requires for franchisees and any principal.
- (v) Franchisee and the transferee and its owners have agreed to and delivered to Franchisor the material terms and conditions that will comprise the purchase and sale agreement for the Operating Assets and all other assets to be included in the sale of the Bumper Business.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, a proposed transferee must meet several standards to operate a Bumper Man business. The transferee must have sufficient business experience, aptitude, assets, and financial resources. They must also be of good character and meet Bumper Man's standards for franchisees. These standards include satisfying minimum net worth, liquid asset, equity/debt ratio, and credit score requirements. The transferee must submit a complete and accurate franchise application and pay all applicable fees, as well as complete and pass all background checks.
Additionally, the transferee must not have any felony convictions or other crimes that may adversely affect Bumper Man's marks or system. They also cannot have a history of claims against other franchisors or a pattern of litigiousness. The operation or ownership of the Bumper Man business by the transferee must not violate any contracts with third parties. The transferee cannot be involved in a competitive business and must cooperate with reasonable due diligence requests from Bumper Man.
Furthermore, the transferee and their owners, as specified by Bumper Man, must complete the initial training program. They must also agree to be bound by the terms of Bumper Man's current franchise agreement and sign any required ancillary documents. The transferee must also adhere to the conditions outlined in Section 16(d) of the franchise agreement, as amended by Bumper Man, prior to or concurrently with the transfer's effective date.
These requirements are typical in franchising to ensure that new franchisees are well-qualified and will maintain the brand's standards. Prospective franchisees should carefully review these requirements and ensure they can meet them before proceeding with a transfer.