Under what conditions is Bumper Man not obligated to participate in a franchisee's defense or indemnify them for expenses or damages in a proceeding involving the Bumper Man trademarks?

According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man is not required to protect a franchisee's right to use their trademarks or shield them from infringement or unfair competition claims. Specifically, Bumper Man is not obligated to participate in the franchisee's legal defense or cover expenses or damages if the franchisee is involved in an administrative or judicial proceeding concerning the trademarks, especially if the outcome of the proceeding is unfavorable to the franchisee.

This means that if a franchisee faces a lawsuit or administrative action related to the use of Bumper Man's trademarks, the franchisee may be responsible for their own legal defense and any associated costs. This could arise, for example, if a franchisee uses the trademarks in a way not approved by Bumper Man, leading to a claim of infringement by a third party.

This lack of obligation on Bumper Man's part places a significant risk on the franchisee. It is crucial for prospective franchisees to fully understand the permitted uses of the Bumper Man trademarks and to adhere strictly to Bumper Man's guidelines to minimize the risk of legal challenges. Franchisees should also consider obtaining their own legal counsel and insurance to protect themselves against potential trademark-related claims.