For a Bft franchise purchased in Washington, where will arbitration or mediation take place?
Bft 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 franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if a franchisee purchases a Bft franchise in Washington, the arbitration or mediation site will be in Washington. However, the location can be a place mutually agreed upon by both parties at the time of the arbitration or mediation. The location could also be determined by the arbitrator or mediator at the time of arbitration or mediation.
This means that franchisees who purchase a Bft franchise in Washington have some protection regarding where disputes are resolved. It ensures that the process will occur within the state unless both parties agree to an alternative location or the arbitrator/mediator decides otherwise. This can save the franchisee travel costs and ensure the process occurs in a location familiar with Washington state law.
Additionally, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee in Washington 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. This provides an additional layer of protection for franchisees in Washington, allowing them to pursue legal action within their state under certain circumstances.