Under what conditions can a Bumper Man franchisee use alternative channels of distribution?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 12 TERRITORY
Your Bumper Business will be located within a designated geographic area ("the Designated Area") as described in Exhibit D of the Franchise Agreement. We determine the Designated Area by the specific geographic and market factors affecting the Designated Area and by our overall plan for development of the Designated Area. These factors may include: the number of Major Dealerships, number of local and regional dealerships and the size and demographics of the local population. You do not have the right to use alternative channels of distribution (as further described below) in connection with offering bumper repair services and related products of the Bumper Man system unless otherwise approved by us.
We will not, during the term of your Franchise Agreement, operate or grant others the right to operate a Bumper Man repair services business in the Designated Area. Subject to certain rights reserved to us (as described below), only you will be authorized to market and perform Bumper Man bumper repair services in the Designated Area. 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. You are permitted only to operate one Bumper Business according to the terms of a single Franchise Agreement, although you may request our consent to transfer your Franchise Agreement subject to satisfying the conditions for consent to transfer and acquire the right to operate a Bumper Business in a new Designated Area (subject to availability).
You will not relocate your Bumper Business.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, franchisees do not have the right to use alternative channels of distribution in connection with offering bumper repair services and related products of the Bumper Man system unless otherwise approved by Bumper Man. This means that franchisees are generally restricted to the primary distribution methods defined by the franchisor and cannot independently pursue other sales or marketing avenues without explicit permission.
Bumper Man may solicit orders for bumper repair services in any area, including a franchisee's designated area. If these solicitations are accepted by customers within the franchisee's area, Bumper Man will refer the customer to the franchisee to provide the repair services. The franchisee will not be compensated for Bumper Man soliciting these services.
Bumper Man occasionally negotiates national account status with wholesale auto auction houses, rental car chains, automobile repair chains, and other businesses that maintain fleets of vehicles. Bumper Man may offer a franchisee the opportunity to service a local auction or repair facility outside their designated area as they become available through the national account status. These opportunities are offered on an "as needed" basis. A franchisee may also request consent to solicit or accept orders for bumper repair services to customers outside of their designated area, provided they do not direct marketing, advertising, or promotions to customers within another Bumper Man franchisee's designated area and do not perform bumper repair services for any customer within another franchisee's designated area. If a franchisee elects to provide bumper repair services to customers outside their designated area, they will sign an amendment to the Franchise Agreement memorializing the terms and conditions under which they will perform such services.