Does state law permit a Bumper Man franchisee to terminate the franchise agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Termination by Franchisee.
The franchisee may terminate the franchise agreement under any grounds permitted under state law.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, a franchisee's ability to terminate the franchise agreement is subject to state law. Specifically, the FDD states that the franchisee may terminate the franchise agreement under any grounds permitted under state law. This means that the specific rights and procedures for a Bumper Man franchisee to terminate their agreement can vary significantly depending on the state in which they operate.
For example, the California addendum to Item 17 states that California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer, or nonrenewal of a franchise. It also clarifies that if the Franchise Agreement contains a provision that is inconsistent with the law, the law will control. Similarly, in Virginia, the FDD states that it is unlawful for a franchisor to cancel a franchise without reasonable cause, according to the Virginia Retail Franchising Act.
In Illinois, the Illinois Franchise Disclosure Act governs the franchise agreements, and the conditions under which a franchise can be terminated may be affected by this Act. Minnesota law also provides franchisees with certain termination and non-renewal rights, requiring specific notice periods for termination and non-renewal, except in certain specified cases. Given these state-specific stipulations, prospective Bumper Man franchisees should carefully review the state addenda in the FDD and consult with legal counsel to understand their termination rights in their specific state.