Is there an exception for contesting tax liability for a Bumper Man franchisee?

According to Bumper Man's 2025 Franchise Disclosure Document, a franchisee may face termination of their franchise agreement if they fail to pay applicable taxes related to their Bumper Business operations. However, there is an exception if the franchisee is contesting their liability for such taxes in good faith and has effectively stayed the enforcement of the liability. This means that Bumper Man will not terminate the franchise agreement if the franchisee is actively and legally challenging the tax assessment.

This provision protects franchisees who have a legitimate dispute with tax authorities. By contesting the liability in good faith and obtaining a stay of enforcement, the franchisee can avoid immediate termination of the agreement while the dispute is resolved. This is a crucial protection, as tax disputes can be lengthy and costly, and immediate termination could severely harm the franchisee's business.

It is important for a prospective Bumper Man franchisee to understand the conditions of this exception. The franchisee must demonstrate that they are genuinely contesting the tax liability and have taken the necessary legal steps to prevent immediate enforcement. Failure to meet these conditions could result in the termination of the franchise agreement, even if the franchisee believes they have a valid reason for not paying the taxes when initially due.