In Washington, can a Boulder Designs franchisee bring an action related to the sale of franchises in Washington?
Boulder_Designs 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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee in Washington may bring an action or proceeding arising out of or in connection with the sale of franchises in Washington. This right is protected under the Washington Franchise Investment Protection Act. This means that if a Boulder Designs franchisee in Washington believes they have a claim related to the sale of their franchise, they are entitled to pursue legal action within the state.
This provision ensures that Boulder Designs franchisees in Washington have access to local courts for disputes related to franchise sales, offering them a more convenient and potentially less expensive venue compared to out-of-state options. The ability to bring an action in Washington can be a significant advantage for franchisees, as it allows them to resolve disputes under the legal framework of their own state.
Furthermore, the FDD specifies that the arbitration or mediation site for any disputes involving a franchise purchased in Washington will be either in Washington or a place mutually agreed upon. This helps protect franchisees from having to travel to a distant location for dispute resolution. The inclusion of these specific protections for Washington franchisees highlights the importance of understanding state-specific franchise laws and how they can impact the franchise agreement.