What does the term 'you' mean in the Bumper Man Disclosure Document?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "you" means the person buying the franchise, the franchisee. If the franchisee is a general partnership (or if we allow you to assign your rights as franchisee to a general partnership), the term "you" refers to all partners. If the franchisee is a corporation, limited liability company or other business entity (or if we allow you to assign your rights as franchisee to a corporation, limited liability company or other business entity), the term "you" refers to the franchisee and the term "principals" refers to any individual or entity with a controlling ownership in the franchisee (including shareholders of a corporation, members of a limited liability company, general and limited partners of a limited partnership, etc.).
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the term 'you' refers to the franchisee, or the person buying the franchise. However, the definition expands based on the franchisee's business structure. If the franchisee is a general partnership, 'you' refers to all partners within that partnership. Similarly, if Bumper Man allows the franchisee to assign their rights to a general partnership, the term 'you' still encompasses all partners.
If the franchisee is a corporation, limited liability company, or another business entity, the term 'you' refers to the franchisee entity itself. In this case, the document introduces another term, 'principals,' which refers to any individual or entity with a controlling ownership in the franchisee. This includes shareholders of a corporation, members of a limited liability company, and general or limited partners of a limited partnership.
This distinction is important because it clarifies who is bound by the terms of the franchise agreement. For individual franchisees, 'you' is straightforward. However, for franchisees operating under a business entity, both the entity and its controlling individuals ('principals') are subject to the agreement's obligations. This ensures that Bumper Man can enforce the agreement against the appropriate parties, regardless of the franchisee's legal structure.