For a Card My Yard franchise purchased in Washington, where will the arbitration or mediation site be located?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, for franchises purchased in Washington, the arbitration or mediation site will be located in the state of Washington. However, the location can 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.
Additionally, if litigation is not precluded by the franchise agreement, a franchisee in Washington 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 avenue for legal recourse within the state for specific issues related to the franchise agreement or its sale.
This stipulation offers some protection and convenience for franchisees in Washington, as it ensures that arbitration or mediation proceedings will likely occur within the state, unless otherwise agreed upon. This can reduce travel costs and logistical challenges for franchisees during dispute resolution. Franchisees should carefully review the franchise agreement to understand the conditions under which litigation is permitted, as opposed to mandatory arbitration or mediation.