Does the Bumper Man franchise agreement specify that disputes must be mediated before being arbitrated?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| u. | Section 24 | Except for certain claims, all disputes must be |
| Dispute resolution by | mediated, and if not resolved, arbitrated in Texas | |
| arbitration or mediation | unless contrary to applicable state law. | |
| v. Choice of forum | Section 24(c)(7) | Litigation must be in the U.S. District Court for the Northern District of Texas, Dallas Division or District Courts of Texas serving Dallas County, Texas (subject to state law). |
| w. | Section 24(b) | Texas law applies (subject to state law) |
| Choice of law |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Section 24 of the franchise agreement outlines the dispute resolution process. Except for certain claims, all disputes between Bumper Man and the franchisee must first go through mediation.
If mediation is unsuccessful in resolving the dispute, the matter will then proceed to arbitration. The FDD specifies that arbitration, if required, will take place in Texas, unless this is contrary to applicable state law.
Additionally, the Franchise Disclosure Document specifies that any litigation must occur in the U.S. District Court for the Northern District of Texas, Dallas Division, or District Courts of Texas serving Dallas County, Texas, subject to state law. Texas law governs the franchise agreement, also subject to state law.