If litigation is not precluded by the Development Agreement, where can an Angry Chickz franchisee bring an action in connection with the sale of franchises in Washington?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Development 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 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, specifically the addendum for Washington State, a franchisee may bring an action or proceeding in Washington if litigation is not precluded by the Development Agreement. This action must arise out of or be in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act. This provision ensures that franchisees have a local venue for resolving disputes related to franchise sales and compliance with Washington's franchise laws.
This clause is significant for prospective Angry Chickz franchisees in Washington as it provides a legal recourse within the state. It means that franchisees do not necessarily have to travel to another state to resolve disputes with Angry Chickz Franchising LLC, which can save on legal costs and time. The inclusion of violations of the Washington Franchise Investment Protection Act broadens the scope of potential legal actions that can be pursued in Washington courts.
It is important to note the condition that litigation is 'not precluded by the Development Agreement.' This suggests that the Development Agreement itself may contain clauses that restrict or prevent litigation, such as mandatory arbitration clauses. Franchisees should carefully review the Development Agreement to understand any limitations on their right to litigate disputes. If the agreement mandates arbitration, this Washington addendum specifies that the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon, or as determined by the arbitrator or mediator.
This addendum serves to protect the rights of Angry Chickz franchisees in Washington by ensuring access to local legal remedies and preventing waivers of rights under the Washington Franchise Investment Protection Act, except under specific circumstances such as a negotiated settlement with independent counsel. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state law.