What is the effect of the Washington Franchise Investment Protection Act on the site of mediation 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's 2025 Franchise Disclosure Document, the Washington Franchise Investment Protection Act impacts the location of mediation involving a Chesters franchise purchased in Washington. The mediation site must be in Washington state unless both parties mutually agree to an alternative location at the time of the mediation. Alternatively, the arbitrator or mediator can determine the site at the time of arbitration or mediation.
This stipulation provides significant protection for Chesters franchisees in Washington, ensuring that they are not forced to mediate disputes in a distant or inconvenient location. This reduces travel costs and logistical challenges for the franchisee. It also ensures that the mediation process is subject to Washington law and potentially more favorable to the franchisee given the protections afforded by the Washington Franchise Investment Protection Act.
Furthermore, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee can bring legal action related to the sale of franchises or violations of the Washington Franchise Investment Protection Act in Washington. This reinforces the franchisee's right to resolve disputes within their home state, providing an additional layer of legal protection and convenience.