Where will arbitration or mediation take place for a Bombs Away franchise purchased in Washington?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 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 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, for any franchise purchased in Washington, the arbitration or mediation site will be in Washington state. However, the location can also be a place mutually agreed upon at the time of the arbitration or mediation. The arbitrator or mediator can also determine the location at the time of arbitration or mediation.
This means that if a Bombs Away franchisee in Washington has a dispute with the company that goes to arbitration or mediation, the proceedings will likely occur within the state. This can save the franchisee significant travel costs and inconvenience compared to arbitrating out of state.
However, there are exceptions. The franchisee and Bombs Away can agree to a different location when the arbitration or mediation begins. Also, the arbitrator or mediator has the power to choose the location. Therefore, while Washington is the default location, it is not guaranteed.
Additionally, the FDD states that 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.