Which state's laws govern the Guaranty and all claims arising from the relationship between Bumper Man and the Principal?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
This Guaranty and all claims arising from, under or with respect to the relationship between Franchisor and Principal(s) will be interpreted, enforced and governed by the laws of Texas (without regard to Texas conflicts of law rules).
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the laws of Texas govern the Guaranty and all claims arising from the relationship between Bumper Man and the Principal. This is specified without regard to Texas's conflict of law rules, meaning that even if general legal principles would point to another state's laws, Texas law will still apply.
For a prospective Bumper Man franchisee, this means that any legal disputes related to the Guaranty will be resolved under Texas law, regardless of where the franchisee or principal is located. This is a common practice in franchising, as it provides the franchisor with a consistent legal framework across all franchise locations.
It is important for the franchisee and the principal to understand the implications of Texas law, as it will govern their rights and obligations under the Guaranty. Franchisees should consult with legal counsel to fully understand the terms of the Guaranty and how Texas law will apply to their specific situation.