Are there any exceptions to the Bumper Man requirement to mediate and arbitrate disputes in Texas?
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. |
| 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. Choice of law | Section 24(b) | Texas law applies (subject to 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, dispute resolution through mediation and arbitration in Texas is generally required. However, there are exceptions to this rule. The FDD specifies that the requirement to mediate and arbitrate disputes in Texas applies 'unless contrary to applicable state law.' This means that if Texas state law prohibits mandatory mediation or arbitration for certain types of claims, those claims would be exempt from the standard Bumper Man dispute resolution process.
For a prospective Bumper Man franchisee, this exception is important because it acknowledges that state laws take precedence over the franchise agreement's dispute resolution terms. Franchisees should be aware of the specific state laws governing dispute resolution in Texas to understand their rights and obligations.
It's also important to note that the franchise agreement specifies the choice of forum for litigation as the U.S. District Court for the Northern District of Texas, Dallas Division, or the District Courts of Texas serving Dallas County, Texas, but this is also 'subject to state law.' The agreement also states that Texas law applies, again 'subject to state law.' This consistent qualification highlights the importance of understanding how Texas law interacts with the franchise agreement's terms.