factual

Can Bumper Man pursue non-equitable claims in arbitration after terminating litigation for injunctive relief?

Bumper_Man Franchise · 2025 FDD

Answer 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, Bumper Man can pursue non-equitable claims in arbitration even after terminating litigation for injunctive or other equitable relief. The FDD specifies that the termination of any litigation for injunctive or other equitable relief will not prevent Bumper Man from asserting non-equitable claims in an arbitration involving the same parties or causes of action.

This means that if Bumper Man initially seeks an injunction against a franchisee in court but later drops the court case, it can still pursue monetary damages or other non-equitable remedies against the franchisee through arbitration. This provision gives Bumper Man flexibility in how it pursues legal claims against franchisees, allowing it to seek immediate injunctive relief in court while preserving its right to pursue other claims in arbitration.

For a prospective Bumper Man franchisee, this clause highlights the importance of understanding the dispute resolution process outlined in the franchise agreement. Even if a court case is dropped, the franchisee could still face arbitration for related non-equitable claims. Franchisees should be aware of this potential two-step legal process and factor it into their risk assessment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.