Under what conditions can a Bft franchisee in Washington bring an action or proceeding related to the sale of franchises?
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, a franchisee in Washington may bring an action or proceeding related to the sale of franchises if litigation is not precluded by the franchise agreement. This means that if the franchise agreement does not contain a clause preventing lawsuits, a franchisee can pursue legal action.
Specifically, the action or proceeding must arise out of or be in connection with the sale of franchises or a violation of the Washington Franchise Investment Protection Act. This act is designed to protect franchisees from unfair or deceptive practices by franchisors. Therefore, the franchisee's claim must be related to either the initial sale of the franchise or a violation of this specific Washington state law.
Furthermore, the FDD states that in any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be 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 ensures that legal proceedings occur within Washington state, unless otherwise agreed upon, which can be more convenient and cost-effective for the franchisee.