For a Chem Dry franchise purchased in Washington, where will arbitration or mediation take place?

According to Chem Dry's 2024 Franchise Disclosure Document, for a franchise purchased in Washington, the arbitration or mediation site will be in the state of Washington. However, the location can also be a place mutually agreed upon at the time of the arbitration or mediation. In the absence of mutual agreement, the arbitrator or mediator will determine the location at the time of arbitration or mediation.

This means that franchisees in Washington have some protection regarding the location of arbitration or mediation, ensuring it will occur within the state unless they agree otherwise. This can save on travel costs and make the process more convenient. It is fairly common for franchise agreements to specify a particular location for arbitration, often the location of the franchisor's headquarters, which can be a disadvantage for franchisees.

The FDD also 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. This provides an additional layer of protection for franchisees in Washington, allowing them to pursue legal action in their home state under certain circumstances.

Prospective franchisees should carefully review the franchise agreement and any state-specific addenda to fully understand their rights and obligations regarding dispute resolution. Consulting with an attorney experienced in franchise law is advisable to ensure a clear understanding of these provisions.