For Bumper Man franchise disputes, what claims are exempt from the mediation and arbitration requirements?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | Section 24 | Except for certain claims, all disputes must be mediated, and if not resolved, arbitrated in Texas unless contrary to applicable state law. |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 38–44)
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 a franchisee must first undergo mediation. If mediation is unsuccessful, the dispute will then be settled through arbitration. Both mediation and arbitration will take place in Texas, unless this is contrary to applicable state law.
This means that a Bumper Man franchisee may be required to participate in mediation and arbitration for most disputes arising with the franchisor. The FDD specifies that there are "certain claims" that are exempt from this requirement, but it does not specify what those claims are.
It is important for a prospective franchisee to understand which claims are subject to mediation and arbitration, and which are not. Franchisees should seek clarification from Bumper Man regarding the specific types of claims that are exempt from these requirements. Understanding these provisions is crucial for assessing the potential costs and processes involved in resolving disputes with Bumper Man.