Are there any exceptions to the arbitration location for Bumper Man franchise disputes?
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, dispute resolution through arbitration or mediation will generally occur in Texas. However, there is an exception: this requirement does not apply if it is contrary to applicable state law. This means that depending on the franchisee's location and relevant state laws, the arbitration or mediation may occur outside of Texas.
Additionally, the FDD specifies that litigation, if necessary, 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, but this is also subject to state law. This indicates that while Bumper Man prefers legal proceedings to take place in Texas, state law may dictate otherwise.
For a prospective Bumper Man franchisee, this means understanding the specific dispute resolution laws in their state is crucial. They should consult with a legal professional to determine how these laws might affect the location and process of any potential arbitration, mediation, or litigation with Bumper Man.