Under what circumstances can the Bumper Man franchisor terminate the franchise agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
ls to have in effect at all time the insurance coverages as required in Section 13 of this Agreement.
- (xv) Less than thirty-five percent (35%) of Franchisee's Gross Sales during each month in any consecutive two (2)-month period is generated from the repair of metal bumpers.
- (xvi) Franchisee (or any of its Principals) refuses to take a drug test requested by Franchisor (if applicable law permits Franchisor to request that Franchisee or its Principals take a drug test) or fails any drug test so taken.
- (b) Termination for Other Material Breach. Except as provided in Section 18(a), Franchisor may terminate this Agreement for failure by Franchisee (or any of its Principals) to
comply with any other material provision of this Agreement, including, without limitation, the representations and warranties contained in this Agreement, or any Standard material to operation of the Bumper Business within 30 days after Notice of such Event of Default is delivered to Franchisee.
- (c) Termination for Repeated Default. This Agreement will terminate immediately upon delivery of Notice to Franchisee if Franchisee (or any of its Principals) fails on three or more separate occasions within any period of 12 consecutive months to do any one or more or combination of the following: (1) submit when due reports or other data, information or supporting record; (2) pay when due any amounts due to Franchisor or its Affiliates; or (3) otherwise materially comply with this Agreement, whether or not such failures are corrected after Notice of such failure is delivered to Franchisee.
- (d) Termination for Insolvency. This Agreement will automatically terminate upon any of the following: if any bankruptcy proceeding is commenced by or against Franchisee (or any Affiliate or Principal), the Franchisee makes an assignment for the benefit of creditors or admits in writing its insolvency or inability to pay its debts generally as they become due; Franchisee consents to the appointment of a receiver, trustee or liquidator of all or the substantial part of its property; the Bumper Business or Operating Assets is attached, seized, subjected to a writ or distress warrant or levied upon, unless such attachment, seizure, writ, warrant or levy is vacated within 30 days after Notice from Franchisor; or any order appointing a receiver, trustee or liquidator of Franchisee or the Bumper Business is not vacated within 30 days following the entry of such order. Without limiting the foregoing, Franchisee may request that Franchisor reinstate this Agreement following the entry of an order of bankruptcy discharge from a court of competent jurisdiction, which Franchisor may grant or deny at its sole option and, if granted, Franchisor may require Franchisee to sign Franchisor's then-current form of franchise agreement in lieu of reinstatement of this Agreement.
- (e) Termination for Violation of Applicable Law.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the franchise agreement can be terminated under several circumstances. Bumper Man can terminate the agreement if the franchisee fails to comply with any material provision of the agreement or any standard material to the operation of the Bumper Business within 30 days after notice of the event of default is delivered.
The agreement can be terminated immediately if the franchisee fails on three or more separate occasions within 12 consecutive months to submit reports when due, pay amounts due to Bumper Man, or otherwise materially comply with the agreement, regardless of whether such failures are corrected after notice.
Additionally, the agreement will automatically terminate if the franchisee becomes insolvent, commences bankruptcy proceedings, makes an assignment for the benefit of creditors, admits in writing their inability to pay debts, consents to the appointment of a receiver, or if the Bumper Business is attached or seized, unless vacated within 30 days after notice from Bumper Man. The agreement will also terminate immediately if the franchisee violates any applicable law or has any necessary license or certification revoked or suspended.