During the term of the Bumper Man franchise agreement, what is the geographic scope of the non-compete restriction?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term, this restriction applies to any Competitive Business located within the United States. Following the expiration of the Term, termination of this Agreement, or an approved Transfer of this Agreement and with respect to a Principal, following the date the Principal ceases to be a Principal under this Agreement, this restriction will apply to any Competitive Business located within 25 miles of the Designated Area and any other Bumper Man business, except as otherwise approved in writing by Franchisor.
If any part of these restrictions is found to be unreasonable in time or distance, each month of time or mile of distance may be deemed a separate unit so that the time or distance may be reduced by appropriate order of the court to that deemed reasonable. If, at any time during the two-year period following the expiration, termination, or approved Transfer of this Agreement or the date any Principal ceases to be a Principal under this Agreement, Franchisee or any of its Principals fails to comply with its obligations under this Section 17(a), that period of non-compliance will not be credited toward satisfaction of the two-year period.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, during the term of the franchise agreement, franchisees are restricted from engaging in any Competitive Business within the United States. This means that while a franchisee is operating a Bumper Man franchise, they cannot own, operate, or be involved with any competing business anywhere in the country. This restriction also applies to advising, helping, making loans to, or having any interest in a Competitive Business.
After the franchise term expires, is terminated, or is transferred, the non-compete restriction changes. It then applies to any Competitive Business located within 25 miles of the Designated Area of the former Bumper Man franchise, as well as any other Bumper Man business. This post-term restriction also applies to a Principal of the franchise after they cease to be a Principal. The franchisor retains the right to approve exceptions to this restriction in writing.
The FDD also states that if any part of these restrictions is found to be unreasonable in time or distance, the court may reduce the time or distance to what is deemed reasonable. Furthermore, any period of non-compliance with the non-compete obligations during the two-year period following the expiration, termination, or transfer of the agreement will not be credited toward satisfying the two-year restriction period.