For a Big Apple Bagels franchise purchased in Washington, where can arbitration proceedings take place?
Big_Apple_Bagels Franchise · 2025 FDDAnswer 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, specifically Exhibit R concerning Washington State, the location for arbitration involving a franchise purchased in Washington is explicitly defined. The arbitration site must be either within Washington state, at a location mutually agreed upon by both parties at the time of arbitration, or as determined by the arbitrator during the arbitration or mediation process.
This stipulation provides a Big Apple Bagels franchisee with some protection and flexibility regarding the location of arbitration. It ensures that the franchisee is not automatically required to travel to a distant or inconvenient location for dispute resolution. The franchisee has the opportunity to agree on a location that is more suitable, and if an agreement cannot be reached, the arbitrator has the authority to determine the most appropriate site.
It is important to note that this clause applies specifically to arbitrations. If litigation is not precluded by the Big Apple Bagels Franchise Agreement, a franchisee can bring an action or proceeding related to the sale of franchises or a violation of the Washington Franchise Investment Protection Act within Washington state. This offers an additional layer of protection for franchisees operating in Washington.
Prospective Big Apple Bagels franchisees in Washington should carefully review this section of the FDD and understand their rights regarding arbitration and litigation. They should also consult with legal counsel to fully understand the implications of these provisions and how they may affect their franchise agreement.