Before initiating arbitration, what minimum duration of mediation is required for disputes related to the Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
All parties must attend mediation.
We will pay the costs of the first four hours of any mediation, and no mediation is required to extend beyond such four-hour period.
- 19.2 Except as otherwise provided in this Section 20 (including Section 20.1 and 20.3), any Dispute must be submitted to final and binding arbitration as the sole and exclusive remedy for any such controversy or dispute.
Subject to this Section 20, the right and duty of the parties to this Agreement to resolve any disputes by arbitration shall be governed exclusively by the Federal Arbitration Act and the Federal Rules of Evidence, as amended, and arbitration shall take place according to the Commercial Arbitration Rules of the American Arbitration Association in effect as of the date the demand for arbitration is filed.
The arbitration shall be held in city where our corporate headquarters in located (currently Richmond, Virginia).
A single arbitrator shall be selected from a panel of neutral arbitrators provided by the American Arbitration Association and shall be chosen by the striking and ranking method.
The arbitrator must have at least five years' experience in franchise law.
The arbitrator's fees shall be divided equally between the parties.
The arbitrator shall have no authority to amend or modify the terms of this Agreement.
The award or decision by the arbitrator shall be final and binding on the parties and may be enforced by judgment or order of a court having subject matter jurisdiction in the state where the arbitration took place.
The parties consent to the exercise of personal jurisdiction over them by such courts and to the propriety of venue of such courts for the purpose of carrying out this provision; and they waive any objections that they would otherwise have concerning venue and personal jurisdiction.
19.3 Neither mediation nor arbitration will be required for any Dispute which involves amounts due from Franchisee to Franchisor, Franchisee's post termination or expiration use of any of the Marks, System, Confidential Information or Trade Secrets, or Franchisor's right to seek injunctive relief as provided in Section 17.19.
19.4 Class Action Waiver.
Any proceeding (whether mediation, arbitration, trial to a court or jury, appeal or otherwise) must be brought in the parties' individual capacity and not as a plaintiff or class member in any purported class.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, mediation is required before arbitration for dispute resolution. The document specifies that all parties involved must participate in mediation. Bumble Roofing will cover the expenses for the first four hours of mediation. The agreement does not mandate that mediation extend beyond this initial four-hour period.
This means that if a dispute arises between a Bumble Roofing franchisee and the franchisor, both parties are obligated to attend mediation sessions. However, the franchisee should be aware that Bumble Roofing is only financially responsible for the first four hours of mediation. If the mediation extends beyond this time, the franchisee may be responsible for covering additional costs, depending on the agreement reached during mediation or as otherwise determined.
It's important to note that this mediation requirement does not apply to all disputes. Specifically, mediation and arbitration are not required for disputes involving amounts owed by the franchisee to Bumble Roofing, the franchisee's unauthorized use of Bumble Roofing's trademarks or confidential information after termination or expiration of the franchise agreement, or Bumble Roofing's pursuit of injunctive relief. In these specific cases, Bumble Roofing can directly pursue other legal remedies without first engaging in mediation or arbitration.