Does the Bumper Man franchise agreement require mediation before arbitration for disputes?

According to Bumper Man's 2025 Franchise Disclosure Document, the franchise agreement mandates mediation before arbitration for most disputes. Specifically, Item 17, Section 24 of the agreement states that, with the exception of certain claims, all disputes must first undergo mediation. If mediation is unsuccessful in resolving the dispute, the matter will then proceed to arbitration in Texas, unless this conflicts with applicable state law. This structured approach to dispute resolution aims to provide an initial opportunity for the parties to reach a mutually agreeable solution through mediation before resorting to binding arbitration.

For a prospective Bumper Man franchisee, this means that in the event of a disagreement with the franchisor, they will be required to participate in mediation as a first step. Mediation involves a neutral third party who facilitates discussions and helps the parties explore potential resolutions. This process can be less adversarial and more cost-effective than arbitration or litigation.

However, if mediation fails to produce a settlement, the franchisee must then engage in arbitration, which is a more formal process where an arbitrator makes a binding decision. The location of arbitration is specified as Texas, unless state law dictates otherwise, which could add travel costs for franchisees located outside of Texas. Franchisees should be aware of these dispute resolution steps and understand their implications, including the costs and potential inconvenience associated with mediating and arbitrating in Texas.