Is the application of Texas law to the Bumper Man franchise agreement unconditional?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | Section 24 | Except for certain claims, all disputes must be mediated, and if not resolved, arbitrated in Texas unless contrary to applicable state law. |
| v. Choice of forum | Section 24(c)(7) | Litigation must be in the U.S. District Court for |
| the Northern District of Texas, Dallas Division | ||
| or District Courts of Texas serving Dallas | ||
| County, Texas (subject to state law). | ||
| w. Choice of law | Section 24(b) | Texas law applies (subject to state law) |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 38–44)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the application of Texas law to the franchise agreement is conditional. While the franchise agreement states that Texas law applies, this is explicitly "subject to state law".
This means that if any provision of Texas law conflicts with the law of the state where the franchisee operates their Bumper Man franchise, the latter will take precedence. This condition is important for prospective franchisees to understand, as the laws governing franchise agreements can vary significantly from state to state.
For example, a franchisee operating in California might find that certain aspects of the Bumper Man franchise agreement that are valid under Texas law are unenforceable in California due to specific state regulations. Therefore, it is crucial for potential franchisees to be aware of the laws in their own state and how they might affect the terms of their franchise agreement with Bumper Man.