Where will arbitration or mediation take place for a Belocal franchise purchased in Washington?

According to Belocal's 2025 Franchise Disclosure Document, if a franchisee purchases a Belocal franchise in Washington and a dispute arises requiring arbitration or mediation, the location of these proceedings will be in Washington state. However, the proceedings can occur at a location mutually agreed upon by both parties at the time of the arbitration or mediation. Alternatively, the arbitrator or mediator can determine the location during the arbitration or mediation process.

This amendment ensures that Washington franchisees are not forced to travel to another state for dispute resolution, which could be a significant financial and logistical burden. It aligns with the Washington Franchise Investment Protection Act, which aims to protect franchisees within the state. This provision gives a Belocal franchisee in Washington some leverage in determining a convenient and cost-effective location for resolving disputes.

It is important to note that the ultimate decision on the location can rest with the arbitrator or mediator if an agreement cannot be reached. Franchisees should consider this when evaluating the potential costs and risks associated with entering into a Belocal franchise agreement, particularly concerning dispute resolution.