Under what conditions will the additional disclosures in the Bumper Man Franchise Disclosure Document apply?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
The following are additional disclosures for the Franchise Disclosure Document of Bumper Man, Inc. required by various state franchise laws. Each provision of these additional disclosures will not apply unless, with respect to that provision, the jurisdictional requirements of the applicable state franchise registration and disclosure law are met independently without reference to these additional disclosures.
CALIFORNIA
- Item 3 of the Disclosure Document is supplemented by the following language:
Neither we nor any person or franchise broker identified in Item 2 of the Disclosure Document is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A.78a et seq., suspending or expelling such persons from membership in that association or exchange.
- Item 11 of the Disclosure Document is supplemented by the following language:
The interest rate in California cannot exceed 10%.
- Item 17 of the Disclosure Document is supplemented by the following language:
California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer or nonrenewal of a franchise. If the Franchise Agreement contains a provision that is inconsistent with the law, the law will control.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the additional state-specific disclosures apply only when the jurisdictional requirements of the relevant state's franchise registration and disclosure laws are independently met. This means that the specific conditions for each state must be satisfied without relying on the fact that these additional disclosures exist.
For example, the addendum notes that the provisions for Washington apply if (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington. Similarly, the Illinois provisions apply to franchises offered and sold to either a resident of Illinois or a non-resident who will be operating a franchise in Illinois when the offer is made and accepted within the State of Illinois.
This condition ensures that Bumper Man franchisees are protected by the specific laws of their state, and that the franchisor complies with those laws. It also means that a franchisee should carefully review the specific addenda for their state to understand any additional rights or obligations they may have. The FDD also states that a document summarizing acknowledgements and a franchisee questionnaire should not be signed if the offer or sale of the franchise is subject to the state franchise registration/disclosure laws in certain states, including California, Hawaii, Illinois, and others.