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Does the mediation requirement for Alloy apply after the termination of the Franchise Agreement?

Alloy Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. 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 23 — RECEIPTS (FDD pages 69–245)

What This Means (2025 FDD)

According to Alloy's 2025 Franchise Disclosure Document, whether the mediation requirement applies after the termination of the Franchise Agreement depends on the state where the franchise is purchased. For franchisees 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. This condition applies to any arbitration or mediation involving a franchise purchased in Washington.

This means that if an Alloy franchisee in Washington has a dispute with Alloy that requires mediation even after the termination of the franchise agreement, the mediation will occur in Washington or another agreed-upon location. This is a benefit for Washington franchisees as it reduces travel costs and inconvenience.

For franchisees outside of Washington, the FDD does not specify whether mediation is required after termination of the Franchise Agreement. Prospective franchisees should seek clarification from Alloy regarding the specific terms and conditions related to mediation and dispute resolution following the termination of the franchise agreement, as these terms may vary based on the franchisee's location and the specifics outlined in the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.