Upon assignment of the contract, must a Bumper Man franchisee comply with post-termination covenants?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| j. Assignment of contract | Section 16(a) | names, electronic mail address, websites, social media accounts and search engines related to the operation of the Bumper Business or the System or that otherwise associates you with the Bumper Man brand to us or our designee; de identification of your Bumper Man vehicle in accordance with our then-current standards described in the Manual; and compliance with all post-termination covenants and obligations, including without limitation confidentiality, competition and indemnification. No restriction on our right to assign. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a franchisee must comply with post-termination covenants and obligations upon assignment of the contract. Specifically, the franchisee is obligated to adhere to confidentiality, competition, and indemnification terms. This requirement is part of the conditions that must be met when assigning the franchise agreement.
This means that even after a Bumper Man franchisee transfers their franchise to another party, they remain bound by certain restrictions. These include maintaining the confidentiality of proprietary information, refraining from engaging in competitive activities that could harm the Bumper Man system, and protecting Bumper Man against any liabilities arising from their prior operation of the franchise.
For a prospective franchisee, this highlights the importance of understanding the full scope of their obligations, even beyond the period of active operation. It also underscores the need to carefully review the terms of the franchise agreement related to assignment and post-termination covenants to fully grasp the long-term implications of the franchise relationship with Bumper Man.