factual

What is the exception to the standard Big Apple Bagels Franchise Agreement regarding arbitration in Washington?

Big_Apple_Bagels Franchise · 2025 FDD

Answer from 2025 FDD Document

In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in Washington or in a place as mutually agreed upon at the time of the arbitration, or as determined by the arbitrator at the time of arbitration or mediation.

In addition, if litigation is not precluded by the BAGELS 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 23 — RECEIPTS (FDD pages 87–319)

What This Means (2025 FDD)

According to Big Apple Bagels' 2025 Franchise Disclosure Document, there is an exception to the standard franchise agreement regarding arbitration for franchises purchased in Washington. Specifically, the arbitration site must be in Washington or a location mutually agreed upon at the time of arbitration, or as determined by the arbitrator or mediator. This stipulation ensures that Washington franchisees are not forced to arbitrate disputes in a distant or inconvenient location, such as Illinois, as may be the case in the standard agreement.

This exception is significant because it provides a more accessible and potentially less costly means of resolving disputes for Big Apple Bagels franchisees in Washington. It also allows a franchisee to 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 if litigation is not precluded by the franchise agreement.

This protection aligns with the Washington Franchise Investment Protection Act, which aims to safeguard franchisees' rights within the state. Prospective franchisees should be aware of this addendum and understand that Washington law will prevail in case of any conflict with the standard Big Apple Bagels Franchise Agreement. This ensures that franchisees operating in Washington have the benefit of local legal protections and a more convenient arbitration process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.