If there is a conflict of laws, which provisions will prevail for a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer or nonrenewal of a franchise. If the Franchise Agreement contains a provision that is inconsistent with the law, the law will control.
The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. Sec. 101 et seq.).
The Franchise Agreement contains a covenant not to compete which extends beyond the termination of the agreement. This provision may not be enforceable under Californ
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the franchise agreement's provisions may be superseded by state laws in certain instances. For example, in California, the California Business and Professions Code Sections 20000 through 20043 grant specific rights to franchisees regarding termination, transfer, or nonrenewal. Should any provision within the Bumper Man Franchise Agreement conflict with these sections of the California law, the law will take precedence. Similarly, the franchise agreement provides for termination upon bankruptcy, but this provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. Sec. 101 et seq.). The Franchise Agreement also contains a covenant not to compete which extends beyond the termination of the agreement, but this provision may not be enforceable under California law.
For franchisees in Illinois, the Illinois Franchise Disclosure Act governs the franchise agreements, and any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside of the state. The Illinois Franchise Disclosure Act may also affect the conditions under which a Bumper Man franchise can be terminated or not renewed. Any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void.
In Washington, several specific regulations override the franchise agreement. Noncompetition covenants are void and unenforceable against an employee (including a franchisee's employee) unless their annualized earnings exceed $100,000, or $250,000 for independent contractors. Additionally, Bumper Man cannot restrict a franchisee from soliciting or hiring employees of other franchisees or of the franchisor. Furthermore, in states like California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, no statement or questionnaire can waive claims under state franchise law or disclaim reliance on statements made by Bumper Man or its representatives.