Can the location of arbitration or mediation for a Chesters franchise in Washington be determined by the arbitrator or mediator?
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, specifically the Washington Addendum, the location for arbitration or mediation involving a franchise purchased in Washington can be determined in one of three ways. First, it can be in the state of Washington. Second, it can be in a location mutually agreed upon by both parties at the time of the arbitration or mediation. Third, the arbitrator or mediator can determine the location at the time of the arbitration or mediation.
This means that a Chesters franchisee in Washington has some protection regarding the location of these proceedings. The franchisee can either agree to a location with Chesters, or if no agreement is reached, the arbitrator or mediator will decide. This provision aims to ensure that the location is fair and convenient, taking into account the interests of both parties involved in the dispute.
Additionally, the Washington Addendum states that if litigation is not precluded by the franchise agreement, a franchisee can bring an action or proceeding arising out of or related to the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington. This provides an additional layer of protection for Chesters franchisees in Washington, allowing them to pursue legal action within their own state under certain circumstances.