Is there an exception to the prohibition of operating another business for a Bumper Man franchisee's Operating Principal?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Standards. Franchisee understands the importance of maintaining uniformity among all of the Bumper Businesses and the importance of complying with the Standards relating to the operation of the Bumper Business. Franchisee may not engage in any cobranding in or with the Bumper Business or operate any other business during the Term (provided nothing contained in this Section 6(a) will prohibit Franchisee's Operating Principal (if Franchisee is an Entity) from engaging in another business that is not a Competitive Business during hours in which Customers within the Designated Area are not open for business for the purposes of supplemental income). Notwithstanding the foregoing, Franchisor may allow for a deviation from the Standards at its sole option.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, there is a limited exception to the prohibition of a franchisee's Operating Principal engaging in another business. Specifically, if the franchisee is an entity, the Operating Principal may engage in another business for supplemental income, provided that the other business is not a Competitive Business and operates during hours when Bumper Man customers in the Designated Area are not open for business.
This exception allows the Operating Principal to supplement their income without directly competing with the Bumper Man franchise or interfering with its operating hours. However, the definition of "Competitive Business" is critical. A prospective franchisee should carefully review the FDD and franchise agreement to understand what constitutes a Competitive Business to ensure compliance.
It's also important to note that this exception is not a right, but a permission. Bumper Man retains the right to allow or disallow deviations from the standard at its sole option. Therefore, a franchisee should not assume that they can automatically engage in another business, even if it meets the criteria. They should seek written confirmation from Bumper Man to avoid potential breaches of the franchise agreement.