Where will arbitration or mediation take place for an Aerus franchise purchased in Washington?
Aerus 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 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, for any arbitration or mediation involving a franchise purchased in Washington, the location will be in one of three places. First, the arbitration or mediation site can be in the state of Washington. Second, it can be in a location mutually agreed upon by both parties at the time of the arbitration or mediation. Third, the location can be determined by the arbitrator or mediator at the time of the arbitration or mediation.
This means that franchisees who purchase an Aerus franchise in Washington have some protection regarding where disputes are resolved. They are not necessarily required to travel to Aerus's headquarters or another location outside of Washington for arbitration or mediation. The franchisee can attempt to negotiate a mutually agreeable location, and if that is not possible, the arbitrator or mediator will decide.
Additionally, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee can 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 provides an additional layer of protection for Washington franchisees, allowing them to pursue legal action in their home state under certain circumstances.