Where will arbitration or mediation take place for a Budget franchise purchased in Washington?

According to Budget's 2025 Franchise Disclosure Document, for any franchise purchased in Washington, the arbitration or mediation site will be in one of three possible locations. First, the site can be in the state of Washington. Second, the site can be in a place mutually agreed upon at the time of the arbitration or mediation. Third, the location can be determined by the arbitrator or mediator at the time of arbitration or mediation.

This means that franchisees who purchase a Budget franchise in Washington have some protection regarding where they may be required to travel for dispute resolution. The agreement does not force franchisees to travel out of state, unless they agree to do so, or the arbitrator/mediator decides on a location outside of Washington. This can save franchisees travel costs and time away from their business.

It is important to note that the FDD also 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. This provides an additional layer of protection for franchisees in Washington, as they can pursue legal action in their home state under certain circumstances.