For a Bath Tune Up franchise purchased in Washington, where will arbitration or mediation take place?
Bath_Tune_Up 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 page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, if a franchisee purchases a franchise in Washington, the location for any arbitration or mediation will be in the state of Washington. However, there are a couple of exceptions. The location could be a place mutually agreed upon at the time of the arbitration or mediation. Also, the arbitrator or mediator could determine the location at the time of arbitration or mediation.
This clause is important for prospective Bath Tune Up franchisees in Washington because it ensures that they will not be forced to travel to a distant or inconvenient location for dispute resolution. It offers some protection under the Washington Franchise Investment Protection Act. The franchisee has some say in where the arbitration or mediation takes place.
It is fairly common for franchise agreements to specify a location for arbitration or mediation, often favoring the franchisor's home state. The Bath Tune Up franchise agreement provides some flexibility for franchisees in Washington, which is a benefit. Franchisees should consider the potential costs and logistical challenges of arbitration or mediation when evaluating the franchise opportunity.