What is the impact of the Washington Franchise Investment Protection Act on the Chesters franchise agreement's provisions regarding arbitration?
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, the Washington Franchise Investment Protection Act significantly impacts the franchise agreement's provisions regarding arbitration for franchises purchased in Washington. The addendum to the franchise agreement specifies that the arbitration site must be in Washington, or a location mutually agreed upon at the time of arbitration or mediation, or as determined by the arbitrator or mediator. This ensures that Washington franchisees are not forced to arbitrate disputes in distant or inconvenient locations.
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 provision offers an additional layer of protection, allowing franchisees to pursue legal remedies within their home state. These stipulations are designed to protect franchisees' rights and provide a fair legal environment.
In the event of any conflict between the franchise agreement and the Washington Franchise Investment Protection Act, the Act will take precedence. This ensures that the protections afforded by Washington state law are upheld, regardless of what the franchise agreement may state. This addendum applies if the offer to sell a Chesters franchise is accepted in Washington, the purchaser is a Washington resident, or the franchised business is located or operated in Washington, providing clarity on the scope of these protections.