Where will arbitration or mediation take place for a Body20 franchise purchased in Washington?
Body20 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 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, for any arbitration or mediation involving a Body20 franchise purchased in Washington, the location will be in the state of Washington. However, there are two exceptions to this rule. The arbitration or mediation can occur at a location mutually agreed upon by both parties at the time of the arbitration or mediation. Alternatively, the arbitrator or mediator can determine the location at the time of the arbitration or mediation.
This means that while Washington state law generally dictates that arbitration or mediation should occur within the state, there is room for negotiation or for the arbitrator/mediator to decide on a different location. This flexibility could be beneficial if both parties find a more convenient or cost-effective location outside of Washington. However, it also introduces the risk of the franchisee having to travel outside of Washington for these proceedings if an agreement cannot be reached or if the arbitrator/mediator decides on an out-of-state location.
Furthermore, if litigation is not precluded by the franchise agreement, a Body20 franchisee can 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, ensuring they have the option to pursue legal action within their state under certain circumstances.