Under the Bumper Man franchise agreement, can the franchisee's immediate family members be a party to any arbitration proceeding?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) No Class Action. No party except Franchisor (including its employees, agents, officers or directors and its parent, subsidiary or affiliated companies) and Franchisee (including where applicable the immediate family members, owners, heirs, executor, successors, assigns, shareholders, partners, and guarantors (as applicable) may join in or become a party to any arbitration proceeding arising under or related to this Agreement or any other agreement between Franchisor and Franchisee, the relationship between Franchisor and Franchisee, the scope and validity of this Agreement or any other agreement between Franchisor and Franchisee, specifically including whether any specific claim is subject to arbitration at all (i.e. arbitrability questions) and/or the offer or sale of the franchise opportunity; and further, the arbitrator will not be authorized to permit any person or entity that is not a party to this Agreement or identified in this paragraph to be involved in or to participate in any arbitration conducted pursuant to this Agreement. No matter how styled by the party bringing the claim, any claim or dispute is to be arbitrated on an individual basis and not as a class action or representative action. FRANCHISEE EXPRESSLY WAIVES ANY RIGHT TO ARBITRATE OR LITIGATE AS A CLASS ACTION. Any question regarding the interpretation or enforceability of this prohibition on class-wide or representative arbitration shall be resolved by a court of competent jurisdiction, and not the arbitrator
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the franchise agreement outlines specific conditions regarding who can be a party to arbitration proceedings. Besides Bumper Man itself (including its employees, agents, officers, directors, parent, subsidiary, or affiliated companies) and the franchisee, the franchisee's immediate family members, owners, heirs, executors, successors, assigns, shareholders, partners, and guarantors can also be a party to any arbitration proceeding.
However, the agreement explicitly states that no other party can join or become a party to any arbitration proceeding arising under or related to the franchise agreement or the relationship between Bumper Man and the franchisee. The arbitrator is not authorized to permit any person or entity not already a party to the agreement to participate in the arbitration. This clause ensures that arbitration remains confined to the parties directly involved in the franchise relationship.
Furthermore, the Bumper Man franchise agreement emphasizes that any claim or dispute must be arbitrated on an individual basis and not as a class action or representative action. The franchisee expressly waives any right to arbitrate or litigate as a class action. Any questions regarding the interpretation or enforceability of this prohibition on class-wide or representative arbitration will be resolved by a court of competent jurisdiction, not the arbitrator.