If an Alloy franchise is purchased in Washington, can the arbitration site be outside of Washington?

According to Alloy's 2025 Franchise Disclosure Document, if a franchise is purchased in Washington, the arbitration or mediation site must be in 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. This stipulation is part of the Washington Addendum to the Franchise Disclosure Document, Franchise Agreement, and all related agreements. This addendum is applicable if the offer to sell a franchise is accepted in Washington, the purchaser is a resident of Washington, or the franchised business is to be located or operated in Washington.

This means that for any Alloy franchise purchased or operated in Washington, the franchisee has some protection regarding where disputes are resolved. The arbitration or mediation must occur within Washington unless there is an agreement otherwise at the time of the dispute, or the arbitrator/mediator decides otherwise during the proceedings. This clause ensures that Washington franchisees are not forced to travel to a distant location to resolve disputes with Alloy, which could significantly increase their costs and inconvenience.

It is important to note that this provision is designed to protect the franchisee's rights under the Washington Franchise Investment Protection Act. Franchisees should be aware of this protection and consult with legal counsel to fully understand their rights and obligations under the franchise agreement and Washington state law.