Does the Bumper Man franchise agreement specify that arbitrability questions are to be decided by arbitration?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
(C) the scope and validity of this Agreement or any other agreement between Franchisor or its Affiliates and Franchisee or any of its Affiliates or Principals, specifically including whether any specific claim is subject to arbitration at all (i.e. arbitrability questions), except that Franchisor and Franchisee intend for the court to address the applicability and scope of the exceptions found in Section 24(c)(2)(a); and/or
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 addresses whether specific claims are subject to arbitration. Specifically, the agreement states that questions regarding whether a specific claim is subject to arbitration (arbitrability questions) are to be decided by arbitration. However, the agreement also states that the court should address the applicability and scope of the exceptions found in Section 24(c)(2)(a).
This means that while most disputes, including questions about whether a claim should be arbitrated, will be handled through arbitration, there are exceptions where a court will decide if arbitration is appropriate. This could add complexity and cost to resolving disputes, as it may require initial court involvement to determine arbitrability before proceeding to arbitration.
It is important for a prospective Bumper Man franchisee to understand which types of claims fall under the exceptions where a court would decide on arbitrability. This information can help a franchisee anticipate potential legal processes and costs associated with dispute resolution. Franchisees should carefully review Section 24(c)(2)(a) of the franchise agreement to fully understand these exceptions.