For a Chesters franchise purchased in Washington, where will arbitration or mediation take place?
Chesters 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 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, if a franchisee purchases a franchise in Washington, the location for any arbitration or mediation will be in the state of Washington. However, the specific location can be adjusted. The arbitration or mediation site can be a place mutually agreed upon by both parties at the time of the arbitration or mediation. Alternatively, the arbitrator or mediator can determine the location during the arbitration or mediation proceedings.
This stipulation provides some flexibility for Chesters franchisees in Washington. It ensures that the arbitration or mediation will occur within the state, which can reduce travel costs and logistical challenges. The option for mutual agreement allows both parties to find a location that is convenient and suitable for their needs. The arbitrator or mediator's ability to determine the location provides a safeguard if the parties cannot agree, ensuring the process can move forward.
Additionally, 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 further legal recourse within the state for franchisees who believe their rights have been violated.