What is the effect of the Washington Franchise Investment Protection Act on the site of arbitration for a Chesters franchise?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, the Washington Franchise Investment Protection Act impacts the location of arbitration, mediation, and litigation for franchises purchased in Washington. Specifically, for any arbitration or mediation involving a Chesters franchise purchased in Washington, the site must be either in Washington state, a location mutually agreed upon by both parties at the time, or a location determined by the arbitrator or mediator during the proceedings.
This provision ensures that Washington franchisees are not forced to arbitrate or mediate disputes in a distant or inconvenient location, which could increase their costs and make it more difficult to pursue their claims. The franchisee has some protection in determining where the proceedings will occur.
Additionally, if the franchise agreement does not preclude litigation, a franchisee can bring legal action related to the sale of the franchise or violations of the Washington Franchise Investment Protection Act in Washington state. This offers further protection to franchisees by allowing them to litigate disputes in their home state, potentially reducing legal expenses and increasing their access to the legal system.