Is the choice of forum for Bumper Man franchise litigation subject to state law?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| u. | Section 24 | Except for certain claims, all disputes must be |
| Dispute resolution by | mediated, and if not resolved, arbitrated in Texas | |
| arbitration or mediation | 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. | Section 24(b) | Texas law applies (subject to state law) |
| Choice of law |
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, the choice of forum for litigation is subject to state law. Specifically, Item 17 outlines that litigation must occur in the U.S. District Court for the Northern District of Texas, Dallas Division, or District Courts of Texas serving Dallas County, Texas, but this is subject to applicable state law. This means that depending on the franchisee's location and relevant state laws, the specified Texas courts may not be the only or appropriate venue for resolving disputes.
This provision is important for prospective Bumper Man franchisees because it clarifies that the standard Texas forum selection may be superseded by the franchisee's local state laws. Franchisees should be aware that their state's laws could dictate where legal proceedings must take place, potentially adding complexity and cost if a dispute arises. It is essential to understand the interplay between the franchise agreement's forum selection clause and any conflicting state statutes.
Many franchise agreements include forum selection clauses, but they are not always strictly enforced and can be subject to state law limitations designed to protect franchisees. Prospective franchisees should consult with an attorney to fully understand the implications of the forum selection clause in their specific state and how it might affect their rights and obligations under the Bumper Man franchise agreement. This due diligence can help franchisees prepare for potential legal challenges and ensure they are aware of their options for dispute resolution.