Which courts are specified for litigation involving Bumper Man franchise disputes?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
stemwide Outlet Summary for Years 2022 to 2024**
| 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) | Table No. |
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 specified forums for litigation are the U.S. District Court for the Northern District of Texas, Dallas Division, or the District Courts of Texas serving Dallas County, Texas. This is detailed in Section 24(c)(7) of the Franchise Agreement. However, this choice of forum is subject to applicable state law, which means that depending on the franchisee's location and the specifics of state law, these forum clauses might not be strictly enforced.
This forum selection clause is a common feature in franchise agreements. It means that Bumper Man franchisees may have to travel to Texas to resolve legal disputes, which can significantly increase the cost of litigation due to travel expenses, local counsel fees, and other related costs. Franchisees should be aware of this potential burden before signing the agreement.
It is important for prospective franchisees to consult with an attorney to understand the implications of the forum selection clause and how it might affect their rights and obligations. They should also investigate whether the clause is enforceable in their specific state, as state laws can vary on the enforceability of such clauses. Understanding these details is crucial for making an informed decision about investing in a Bumper Man franchise.