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

According to the 2025 Chatime FDD, if a franchisee purchases a Chatime franchise in Washington and a dispute arises requiring arbitration or mediation, the location of these proceedings will be determined based on the following conditions. The arbitration or mediation site will be in the State of Washington. Alternatively, the location could be a place mutually agreed upon by both Chatime and the franchisee at the time the arbitration or mediation is scheduled. As a final option, the arbitrator or mediator can determine the location at the time of the proceedings.

This amendment to the standard franchise agreement provides some protection to Washington franchisees. Without this provision, Chatime could potentially require arbitration to occur in a distant location, which would increase the franchisee's expenses and make it more difficult to resolve disputes. This ensures that Washington franchisees have a more accessible and fair process for resolving disagreements with Chatime.

Furthermore, the FDD states that 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 offers an additional layer of protection for franchisees operating in Washington, allowing them to pursue legal action within their own state under certain conditions.