Where will arbitration or mediation take place for an Alloy franchise purchased in Washington?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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.
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 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if a franchise is purchased in Washington, the location for arbitration or mediation will be determined as follows. The arbitration or mediation site will be in Washington state, or in a location mutually agreed upon by both parties at the time of the arbitration or mediation. Alternatively, the arbitrator or mediator can determine the location during the arbitration or mediation process.
This stipulation is part of a Washington state addendum that takes precedence over conflicting laws. Specifically, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW, will prevail in case of any conflict. This addendum is an integral part of the franchise agreement if the offer to sell the franchise is accepted in Washington, the purchaser is a Washington resident, or the franchised business is to be located or operated in Washington.
Furthermore, the FDD states that a franchisee in Washington may bring legal action in Washington if litigation is not precluded by the franchise agreement, particularly for issues arising from the sale of franchises or violations of the Washington Franchise Investment Protection Act.