Where will the non-binding mediation for Bumper Man disputes take place?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Non-Binding Mediation. Before any Party may bring an action or commence a proceeding against the other Party, the Parties must first meet to mediate the dispute (except for
controversies, disputes or claims related to or based on improper or unauthorized use of the Marks or breach of the covenants and obligations set forth in Section 17(a) or Section 17(b)) in Dallas, Texas or such other location agreed upon by the Parties. Any such mediation will be non-binding and will be conducted by the International Institute for Conflict Prevention & Resolution ("CPR") in accordance with its then-current rules for mediation of commercial disputes.
Notwithstanding anything to the contrary, this Section 24(a) will not bar either Party from obtaining injunctive relief pursuant to Section 24(c)(2)(A) against threatened conduct that will cause it to incur Losses and Expenses, under the usual equity rules, including the applicable rules for obtaining restraining orders and injunctions, without having to engage in mediation. In addition, this Section 24(a) will not apply to any claim or dispute relating to Franchisee's failure to make payments for Continuing Service Fees or other amounts owed to Franchisor under this Agreement. Franchisor and Franchisee will each bear their own costs of mediation, and each will bear one-half the cost of the mediator or mediation service.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, non-binding mediation must occur before either party can initiate a legal action against the other. This mediation will take place in Dallas, Texas, unless both parties agree to another location.
The mediation process will be conducted by the International Institute for Conflict Prevention & Resolution ("CPR") and follow their rules for commercial disputes. However, this mediation requirement does not prevent either party from seeking injunctive relief to prevent actions that could cause losses or expenses, nor does it apply to disputes over the franchisee's failure to pay continuing service fees or other amounts owed to Bumper Man.
Each party is responsible for their own mediation costs, but they will split the costs associated with the mediator or mediation service. This arrangement is fairly standard in franchise agreements, as it encourages both parties to participate in the mediation process in good faith. Franchisees should be aware of these dispute resolution procedures and costs before investing in a Bumper Man franchise.