Under what circumstances might Bumper Man modify the franchisee's Designated Area?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
If the demographics substantially change within your Designated Area, and we determine that the Designated Area may no longer be adequately serviced in accordance with our standards for customer service by a single Bumper Man franchisee, we: (i) may reduce the size of the Designated Area, so long as your Designated Area contains a minimum of
35 Major Dealerships; or (ii) offer the opportunity for you to retain the services of a certified technician that satisfies our then-current criteria for certified technicians and is approved by us in writing within 30 days of our notice of intent to modify the Designated Area. If we offer you the opportunity to retain the services of a certified technician, then within 60 days following our approval of your certified technician, you and the certified technician will execute our then-current form of certified technician addendum and the certified technician will pay the certified technician fee and complete Initial Training. Your Franchise Agreement does not give you any options, rights of first refusal or similar rights to acquire additional franchises.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the company may modify a franchisee's Designated Area if the demographics within that area substantially change. If Bumper Man determines that the Designated Area can no longer be adequately serviced according to their customer service standards by a single franchisee, they have two options.
First, Bumper Man may reduce the size of the Designated Area, provided that the revised area still contains a minimum of 35 Major Dealerships. This ensures that even after the reduction, the franchisee has a viable business territory. Second, Bumper Man can offer the franchisee the opportunity to retain a certified technician. This technician must meet Bumper Man's criteria and receive written approval from the company within 30 days of Bumper Man's notice to modify the Designated Area.
If the franchisee chooses to retain a certified technician, both parties must execute Bumper Man's current certified technician addendum within 60 days of the technician's approval. The certified technician will also be required to pay a fee and complete initial training. This arrangement allows the franchisee to maintain the original Designated Area by increasing service capacity, rather than having the territory reduced. It is important to note that the Franchise Agreement does not give franchisees any options, rights of first refusal, or similar rights to acquire additional franchises.