What warranty does a Bumper Man franchisee make regarding their business entity's legal standing?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
10. REPRESENTATIONS, WARRANTIES, AND COVENANTS.
(a) Business Entity Franchisee.
- (i) Franchisee warrants that it is duly organized or formed and validly existing in good standing under the laws of the jurisdiction of its incorporation or formation; it has the necessary consents, approvals, licenses and/or permits to carry out the business activities contemplated by this Agreement; it will furnish such other information about its organization or formation as Franchisor may reasonably request to confirm the same; and the execution and delivery of this Agreement has been duly authorized by it.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, if the franchisee is a business entity, it makes several warranties to Bumper Man. Specifically, the franchisee warrants that it is properly organized and in good standing under the laws of its jurisdiction. This means the business is legally registered and compliant with the regulations in the state or country where it was formed.
The franchisee also warrants that it possesses all necessary consents, approvals, licenses, and permits required to conduct the business activities outlined in the franchise agreement. This includes ensuring that the business has the legal right to operate in its chosen location and industry. Furthermore, the franchisee commits to providing any additional information about its organization or formation that Bumper Man may reasonably request to verify its legal standing.
Finally, the franchisee warrants that the execution and delivery of the franchise agreement have been duly authorized by the business entity. This confirms that the person signing the agreement on behalf of the franchisee has the legal authority to do so. These warranties are crucial for Bumper Man to ensure that its franchisees are legitimate businesses operating within the bounds of the law, reducing potential legal and financial risks for the franchise system.