Does the Bumper Man franchise agreement specify that Texas law applies?
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 franchise agreement specifies that Texas law applies, although this is subject to applicable state law. This means that the agreement is generally interpreted and enforced under Texas law. However, if any provision of Texas law conflicts with the law of the state where the franchisee is located, the latter might take precedence.
Furthermore, the FDD states that any 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, again subject to state law. This indicates that Bumper Man prefers disputes to be resolved in Texas courts, which could mean increased travel costs and the need to hire Texas-based legal counsel if a lawsuit arises.
It is important for a prospective Bumper Man franchisee to understand the implications of the choice of law and forum. They should consult with a legal professional to assess how Texas law might affect their specific situation, especially if they are located outside of Texas. Understanding these clauses is crucial for anticipating potential legal challenges and costs associated with the franchise agreement.