Does the Bumper Man franchise agreement state that the termination of litigation for injunctive relief will bar the franchisor from asserting non-equitable claims in arbitration?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
further, Franchisee acknowledges that the termination of any litigation for injunctive or other equitable relief will not bar Franchisor from asserting non-equitable claims in an arbitration involving the same parties or causes of action;
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the termination of litigation for injunctive or other equitable relief will not prevent Bumper Man from pursuing non-equitable claims in arbitration involving the same parties or causes of action. This means that even if Bumper Man initially seeks an injunction in court and that litigation ends, they can still bring a separate arbitration claim for other damages or remedies.
This clause is significant for a prospective Bumper Man franchisee because it clarifies the franchisor's options for dispute resolution. Bumper Man retains the right to pursue both injunctive relief in court and monetary damages through arbitration, even if the injunctive relief case is terminated. This could potentially increase the franchisee's legal costs and exposure in case of a dispute, as they might have to defend against actions in two different forums.
Franchisees should be aware of this provision and understand that resolving one legal action does not necessarily preclude Bumper Man from initiating another related action in a different forum. It is advisable to seek legal counsel to fully understand the implications of this clause and to assess the potential risks associated with it.