For C12 Group franchises in Washington, what is the default location for arbitration or mediation if no mutual agreement is reached?
C12_Group 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 — RECEIPTS (FDD pages 46–137)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, for franchises purchased in Washington, the arbitration or mediation site will be in the state of Washington. However, this is only if a mutually agreed-upon location cannot be reached 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 disclosure is specific to Washington, acknowledging the state's regulations regarding franchise agreements and dispute resolution. It ensures that C12 Group franchisees in Washington are not forced to arbitrate or mediate disputes in a distant or inconvenient location unless they specifically agree to it. This protects the franchisee's rights and provides a more accessible legal recourse within their own state.
It is important for prospective C12 Group franchisees in Washington to understand this provision, as it can significantly impact the cost and convenience of resolving any potential disputes with the franchisor. Franchisees should also be aware that they 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.