Where will arbitration or mediation take place for a Best Brains franchise purchased in Washington?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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. 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 franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, for any arbitration or mediation involving a Best Brains franchise purchased in Washington, the location will be in Washington state. However, there are two exceptions to this rule. The first exception is that the location can be a place mutually agreed upon by both parties at the time of the arbitration or mediation. The second exception is that the arbitrator or mediator can determine the location at the time of the arbitration or mediation.
This means that if a Best Brains franchisee in Washington has a dispute with the franchisor that goes to arbitration or mediation, the franchisee has some assurance that the proceedings will take place in their home state, which can reduce travel costs and inconvenience. However, the franchisee should be aware that the location could still be outside of Washington if both parties agree or if the arbitrator or mediator decides so.
It's also important to note that if litigation is not precluded by the franchise agreement, a Best Brains franchisee in Washington can bring a lawsuit related to the sale of the franchise or a violation of the Washington Franchise Investment Protection Act in Washington state. This provides an additional layer of protection for franchisees in Washington.
Many franchise agreements require arbitration to take place in a location that is favorable to the franchisor, so this Washington addendum provides important protections for Best Brains franchisees in Washington.