If litigation is necessary for a Bumper Man franchise dispute, which courts have jurisdiction?
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). |
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, Section 24(c)(7) of the franchise agreement specifies the choice of forum for litigation. If a dispute between Bumper Man and a franchisee escalates to the point of litigation, the lawsuit must be filed in either 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 subject to applicable state law.
This clause means that any legal action a franchisee might want to bring against Bumper Man, or vice versa, must take place in the specified Texas courts. This could create additional expense and inconvenience for a franchisee who does not live in Texas, as they would need to travel to Texas for court proceedings and potentially hire Texas-based legal counsel.
Franchise agreements often contain clauses specifying the jurisdiction and venue for dispute resolution. Franchisees should carefully consider the implications of such clauses, as they can significantly impact the cost and complexity of resolving disputes with the franchisor. It is advisable to seek legal counsel to fully understand the ramifications of these clauses before signing a franchise agreement.