factual

For Bang Cookies franchises purchased in Washington, where will the arbitration site be located?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

  1. In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the State of Washington, or in a place mutually agreed upon at the time of the arbitration or as determined by the arbitrator.

Source: Item 23 — RECEIPTS (FDD pages 56–245)

What This Means (2024 FDD)

According to Bang Cookies's 2024 Franchise Disclosure Document, if a franchisee purchases a Bang Cookies franchise in Washington, the arbitration site will be located either in the State of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator. This amendment acknowledges the Washington State Franchise Investment Protection Act, Chapter 19.100 RCW.

This means that franchisees in Washington have some protection regarding where disputes are resolved. Typically, franchise agreements dictate that arbitration occurs at a location favorable to the franchisor, which can be costly for the franchisee. This clause ensures that Washington franchisees have a chance to have the arbitration held within their state, potentially reducing travel and legal expenses.

However, it's important to note that the final decision on the arbitration site could still be determined by the arbitrator if the parties don't mutually agree. Franchisees should be prepared to negotiate this point and potentially argue for a Washington location to minimize costs and inconvenience. This amendment provides a degree of protection but does not guarantee that arbitration will occur in Washington, as a mutually agreed-upon location or the arbitrator's decision could place it elsewhere.

Disclaimer: This information is extracted from the 2024 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.