Where will arbitration or mediation take place for a 1-800-GOT-JUNK? franchise purchased in Washington?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
3. Site of Arbitration, Mediation, and/or Litigation. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, if a franchisee purchases a franchise in Washington, any arbitration or mediation will occur in Washington. However, the location can also be a place mutually agreed upon by both parties at the time of the arbitration or mediation. The arbitrator or mediator can also determine the location during the arbitration or mediation proceedings.
This addendum modifies the standard franchise agreement to comply with Washington state law, which aims to protect franchisees. This ensures that franchisees are not forced to travel to a distant or inconvenient location for dispute resolution. It provides flexibility by allowing for mutual agreement on a location or arbitrator/mediator determination, but establishes Washington as the default location.
This is a beneficial term for prospective 1-800-GOT-JUNK? franchisees in Washington. It prevents 1-800-GOT-JUNK? from imposing an arbitration or mediation location that would be unduly burdensome or expensive for the franchisee. Franchise agreements often include clauses specifying the venue for dispute resolution, and these clauses tend to favor the franchisor. This Washington addendum provides a more balanced approach.