For a Bumper Man franchise, where is the license to operate a franchise limited to?

According to the 2025 Bumper Man FDD, the franchise agreement and related documents like the Franchisee Questionnaire will not be applicable if the franchise is to be operated in, or the franchisee is a resident of, California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. This suggests that the standard franchise agreement may need to be modified or supplemented to comply with the franchise laws of these states.

For Illinois specifically, the FDD states that certain provisions apply to franchises offered and sold to residents of Illinois or non-residents who will operate a franchise in Illinois when the offer is made and accepted within the state, pursuant to the Illinois Franchise Disclosure Act. These provisions supersede the standard Disclosure Document, indicating that Illinois has specific regulations that take precedence. These regulations include the governance of franchise agreements by the Illinois Franchise Disclosure Act, the voiding of jurisdiction and venue designations outside of Illinois (though arbitration outside Illinois is permitted), and the impact of the Act on termination and non-renewal rights.

Furthermore, the FDD highlights that any condition, stipulation, or provision that attempts to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This underscores the importance of adhering to Illinois-specific franchise laws when operating a Bumper Man franchise within the state. Similarly, California has specific regulations, such as the requirement to deliver all proposed agreements with the disclosure document and the ability to direct complaints about the website to the California Department of Financial Protection and Innovation.

In practical terms, this means that prospective Bumper Man franchisees need to be aware of the specific state laws that govern franchising in their state, especially if they are located in or plan to operate in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. They should carefully review any state-specific addenda to the franchise agreement and consult with an attorney to ensure compliance with all applicable laws. The FDD also indicates that Bumper Man may enforce the Guaranty and any arbitration orders and awards in the courts of the state or states in which the guarantor is domiciled.