Where will arbitration or mediation take place for a 1 800 Packouts franchise purchased in Washington?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
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. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, if a franchisee purchases a franchise in Washington and a dispute arises requiring arbitration or mediation, the location of these proceedings will be in the state of Washington. However, there are two exceptions to this rule. The first is that the location can be a place mutually agreed upon by both 1 800 Packouts and the franchisee at the time the arbitration or mediation is set to occur. The second exception is that the arbitrator or mediator can determine the location at the time of the arbitration or mediation.
This stipulation provides some protection for franchisees in Washington, as it prevents 1 800 Packouts from mandating an out-of-state location for dispute resolution. This can save the franchisee significant travel costs and inconvenience. However, franchisees should be aware that they might need to negotiate the location with 1 800 Packouts or risk having it decided by the arbitrator or mediator.
It is also important to note that if litigation is not precluded by the franchise agreement, a franchisee in Washington may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington. This offers an additional avenue for resolving disputes within the state's jurisdiction.