Where will the arbitration or mediation site be located for a Chatime franchise purchased in Washington?
Chatime 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 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, specifically the Washington Addendum, the arbitration or mediation site for a franchise purchased in Washington will be located either in the State of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation. Alternatively, the location can be determined by the arbitrator or mediator at the time of arbitration or mediation.
This means that franchisees in Washington have some protection regarding the location of arbitration or mediation proceedings. It prevents Chatime from forcing franchisees to travel to a distant or inconvenient location for dispute resolution. This is a beneficial provision for franchisees as it can save on travel costs and time.
It is important to note that the final location can be determined by mutual agreement or by the arbitrator/mediator, so franchisees should be prepared to negotiate or present their case for a convenient location. Additionally, the addendum 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.