According to the Bumper Man agreement, who conducts the non-binding mediation?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Non-Binding Mediation. Before any Party may bring an action or commence a proceeding against the other Party, the Parties must first meet to mediate the dispute (except for
controversies, disputes or claims related to or based on improper or unauthorized use of the Marks or breach of the covenants and obligations set forth in Section 17(a) or Section 17(b)) in Dallas, Texas or such other location agreed upon by the Parties. Any such mediation will be non-binding and will be conducted by the International Institute for Conflict Prevention & Resolution ("CPR") in accordance with its then-current rules for mediation of commercial disputes.
Notwithstanding anything to the contrary, this Section 24(a) will not bar either Party from obtaining injunctive relief pursuant to Section 24(c)(2)(A) against threatened conduct that will cause it to incur Losses and Expenses, under the usual equity rules, including the applicable rules for obtaining restraining orders and injunctions, without having to engage in mediation. In addition, this Section 24(a) will not apply to any claim or dispute relating to Franchisee's failure to make payments for Continuing Service Fees or other amounts owed to Franchisor under this Agreement. Franchisor and Franchisee will each bear their own costs of mediation, and each will bear one-half the cost of the mediator or mediation service.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, non-binding mediation will be conducted by the International Institute for Conflict Prevention & Resolution ("CPR"). This mediation will follow CPR's then-current rules for mediating commercial disputes. The location for the mediation will be Dallas, Texas, unless both parties agree to another location.
This process is required before either party can take legal action against the other, with specific exceptions. These exceptions include disputes related to unauthorized use of Bumper Man's trademarks or breach of certain covenants and obligations, as well as situations where injunctive relief is sought to prevent losses or expenses. Additionally, disputes over the franchisee's failure to pay continuing service fees or other amounts owed to Bumper Man are also exempt from this mediation requirement.
Both Bumper Man and the franchisee are responsible for their own mediation costs. They will also each bear one-half of the costs associated with the mediator or mediation service. This arrangement is typical in franchise agreements, where both parties share the expenses of dispute resolution processes like mediation.