Under the Bumper Man franchise agreement, does the definition of 'Equity Interest' include ownership as an investment of securities traded on a securities exchange?

According to the 2025 Bumper Man Franchise Disclosure Document, the definition of "Equity Interest" does not include ownership as an investment of securities traded on a securities exchange under specific conditions. The document specifies that an "Equity Interest" encompasses various forms of ownership, such as stock, unit, membership, partnership, or other legal, equitable, or beneficial ownership interest in an entity.

However, this definition excludes direct or indirect ownership solely as an investment in securities of an entity traded on a securities exchange if the owner is not a Controlling Person (or a member of an Entity that Controls such Entity). Additionally, this exclusion applies only if the owner does not, directly or indirectly, own 5% or more of any class of securities of such Entity.

For a prospective Bumper Man franchisee, this means that holding a small percentage (less than 5%) of publicly traded stock in a company would not be considered an "Equity Interest" that would trigger certain obligations or restrictions under the franchise agreement, provided they are not a controlling person. This distinction is important for franchisees who may have investment portfolios that include publicly traded securities, as it clarifies the extent to which those investments are subject to the terms of the franchise agreement.