Does the Bumper Man franchise agreement permit class action arbitration?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) No Class Action. No party except Franchisor (including its employees, agents, officers or directors and its parent, subsidiary or affiliated companies) and Franchisee (including where applicable the immediate family members, owners, heirs, executor, successors, assigns, shareholders, partners, and guarantors (as applicable) may join in or become a party to any arbitration proceeding arising under or related to this Agreement or any other agreement between Franchisor and Franchisee, the relationship between Franchisor and Franchisee, the scope and validity of this Agreement or any other agreement between Franchisor and Franchisee, specifically including whether any specific claim is subject to arbitration at all (i.e. arbitrability questions) and/or the offer or sale of the franchise opportunity; and further, the arbitrator will not be authorized to permit any person or entity that is not a party to this Agreement or identified in this paragraph to be involved in or to participate in any arbitration conducted pursuant to this Agreement. No matter how styled by the party bringing the claim, any claim or dispute is to be arbitrated on an individual basis and not as a class action or representative action. FRANCHISEE EXPRESSLY WAIVES ANY RIGHT TO ARBITRATE OR LITIGATE AS A CLASS ACTION. Any question regarding the interpretation or enforceability of this prohibition on class-wide or representative arbitration shall be resolved by a court of competent jurisdiction, and not the arbitrator
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the franchise agreement does not permit class action arbitration. The agreement specifies that any claim or dispute must be arbitrated on an individual basis, explicitly prohibiting class action or representative actions.
This means a Bumper Man franchisee waives the right to participate in a class action lawsuit against the franchisor. Any disputes must be pursued individually through arbitration or litigation. This waiver is clearly stated in the franchise agreement, and the interpretation or enforceability of this prohibition is to be resolved by a court, not an arbitrator.
This clause is relatively common in franchise agreements. It limits the franchisor's exposure to large, consolidated lawsuits, but it may also limit a franchisee's ability to seek redress for certain grievances, as individual legal actions can be more expensive and time-consuming than participating in a class action. Prospective franchisees should carefully consider this provision and its implications for their legal rights.