factual

For a Bonchon franchise purchased in Washington, where will arbitration or mediation take place?

Bonchon Franchise · 2025 FDD

Answer 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 — RECEIPTS (FDD pages 92–536)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, specifically the Washington Addendum to the Franchise Agreement, the location for arbitration or mediation involving a franchise purchased in Washington will be determined in one of three ways. First, the arbitration or mediation can take place within the state of Washington. Second, the location can be a place mutually agreed upon by both Bonchon and the franchisee at the time the arbitration or mediation is initiated. Finally, the location can be determined by the arbitrator or mediator during the arbitration or mediation proceedings.

This provision offers some flexibility for Bonchon franchisees in Washington. It ensures that arbitration or mediation will occur within the state unless both parties agree to an alternative location or the arbitrator/mediator decides otherwise. This can save the franchisee travel costs and time compared to out-of-state arbitration, which is common in many franchise agreements.

It is important to note that this addendum supersedes any conflicting provisions in the standard franchise agreement. Additionally, if litigation is not precluded by the 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 in Washington.

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.