Are there any exceptions to the mediation requirement for Bumper Man disputes?
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 the 2025 Bumper Man Franchise Disclosure Document, there are certain exceptions to the requirement that disputes go through non-binding mediation before a lawsuit can be filed.
Specifically, Bumper Man does not require mediation for controversies, disputes, or claims related to the improper or unauthorized use of Bumper Man's marks, or breach of the covenants and obligations set forth in Section 17(a) or Section 17(b) of the franchise agreement. Additionally, Bumper Man can seek injunctive relief to prevent threatened conduct that would cause losses and expenses without first engaging in mediation. Finally, the mediation requirement does not apply to any claim or dispute relating to a franchisee's failure to make payments for continuing service fees or other amounts owed to Bumper Man under the Franchise Agreement.
This means that Bumper Man franchisees may be able to pursue immediate legal action in certain situations, such as intellectual property disputes, breaches of certain contractual obligations, or failure to pay fees. However, in most other cases, franchisees will be required to attempt mediation before filing a lawsuit. Franchisees are responsible for their own mediation costs, and will split the cost of the mediator or mediation service with Bumper Man.