For an Annex Brands franchise purchased in Washington, where will arbitration or mediation take place?
Annex_Brands 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 franchise, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, for any franchise purchased in Washington, the arbitration or mediation site will be in Washington. However, the location can be 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 means that if a dispute arises and requires arbitration or mediation, an Annex Brands franchisee in Washington will generally have the proceedings take place within the state. This can be a significant advantage, as it reduces travel costs and logistical challenges compared to arbitrating or mediating in another state.
However, there are exceptions. The franchisee and Annex Brands can agree to a different location when the time comes, or the arbitrator/mediator can decide on an alternative site during the proceedings. It is also important to note that 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 franchise, or a violation of the Washington Franchise Investment Protection Act, in Washington.
This clause provides some protection for Washington franchisees, ensuring that they are not forced to resolve disputes in a distant or inconvenient location unless otherwise agreed or determined by the arbitrator/mediator. Franchisees should carefully review the Franchise Agreement and any related documents to fully understand their rights and obligations regarding dispute resolution.