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Is the provision in the Bumper Man Franchise Agreement requiring application of Texas laws always enforceable in California?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

The Franchise Agreement requires application of the laws of Texas. This provision may not be enforceable under California law.

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2025 FDD)

According to the 2025 Bumper Man Franchise Disclosure Document, the provision in the Franchise Agreement that requires the application of Texas laws may not be enforceable under California law. This means that if a dispute arises between Bumper Man and a franchisee in California, a California court may not necessarily apply Texas law, even if the Franchise Agreement states that it should.

This is significant for prospective Bumper Man franchisees in California because California law provides certain protections to franchisees regarding termination, transfer, and nonrenewal of a franchise. If the Franchise Agreement contains a provision that is inconsistent with California law, California law will take precedence. This ensures that California franchisees are afforded the rights and protections under California law, regardless of what the Franchise Agreement stipulates.

Prospective franchisees should consult with legal counsel to fully understand the implications of the choice of law provision and how California law may affect their rights and obligations under the Bumper Man Franchise Agreement. It is important to be aware that certain provisions in the agreement, such as those related to non-compete covenants, jury trial waivers, and liquidated damages, may also be subject to California law and may not be fully enforceable.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.