Does the Baymont Inn Suites franchise agreement require mediation for disputes, and if so, is it binding?
Baymont_Inn_Suites 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.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Baymont Inn Suites franchise agreement does not explicitly state that mediation is required for disputes. However, the FDD includes addenda for specific states like Washington, which address the site of arbitration, mediation, and/or litigation.
For franchisees in Washington, the addendum specifies that in any arbitration or mediation involving a franchise purchased in Washington, the 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 suggests that mediation is a possible method of dispute resolution, but the terms are subject to agreement or determination during the process.
Prospective franchisees should carefully review Section 17 of the franchise agreement, as referenced in the Guaranty within Appendix A, to understand the full scope of dispute resolution options, including mediation, arbitration, and litigation. It is also important to consult with a legal professional to understand the implications of these clauses and how they apply in the franchisee's specific state.