Where will arbitration or mediation take place for a Carls Jr. franchise purchased in Washington?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Site of Arbitration, Mediation, and/or Litigation. 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 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, if a franchisee purchases a franchise in Washington, the arbitration or mediation site will be in 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 the franchise agreement does not preclude litigation, a franchisee in Washington can 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 addendum ensures that franchisees in Washington have the option to resolve disputes within their own state, providing a more convenient and potentially cost-effective venue for legal proceedings. This is particularly important considering the potential costs and logistical challenges associated with traveling to another state for arbitration, mediation, or litigation.