Where will the arbitration or mediation site be located for a Chicken Guy franchise purchased in Washington?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN DEVELOPMENT AGREEMENT | SUMMARY |
|---|---|---|
| a. Length of the development term | Section 1.A. | The term is from the date of execution of the Development Agreement to the date that you sign a lease or purchase the site for the last Franchised Restaurant that you are required to develop under the Development Schedule. |
| PROVISION | SECTION IN DEVELOPMENT AGREEMENT | SUMMARY |
| r. Non-competition covenants after the franchise is terminated or expires | Section 12.C. | No activity as described in q. above for one year within your Development Territory, within two miles of its border and within two miles of any then- existing Chicken Guy! Restaurant. If you violate the post-termination non-competition provisions, you must pay liquidated damages equal to our then- current Initial Franchise Fee and 8% of the Gross Sales of the competing business until the expiration of the non-competition period (subject to state law). |
| s. Modification of the | Section 20 | No modification generally without signed |
| agreement | agreement, but we may modify the System. | |
| t. Integration/merger clause | Section 20 | Only the terms of the Development Agreement are binding (subject to state law). Any representations or promises made outside this disclosure document and the Development Agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Sections 22A. & B. | Subject to state law, either party will submit any claim, controversy, or dispute arising out of the agreement to non-binding mediation and, thereafter, to arbitration. The mediation and arbitration will take place in the city where our principal offices are located at the time the demand for mediation or arbitration is filed, which is currently Orlando, Florida. |
| v. Choice of forum | Section 22.D. | Subject to state law and subject to the mediation and arbitration requirement, any actions for injunctive relief must be filed in the jurisdiction where our principal offices are located at the time suit is filed, which is currently Orlando, Florida while simultaneously submitting the matter to mediation and then arbitration. |
| w. Choice of law | Section 22.C. | Subject to state law, Florida law applies. |
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
| a. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the location for mediation and arbitration related to a Development Agreement or Franchise Agreement is generally Orlando, Florida. However, this is subject to state law. For Chicken Guy franchises in Washington, any provisions in the franchise agreement that mandate mediation or arbitration in a specific location are void and unenforceable due to Washington state law. Therefore, while the standard agreement specifies Orlando, Florida, this does not apply to Washington franchisees.
This means that for a Chicken Guy franchisee in Washington, the actual location for dispute resolution would need to be determined in accordance with Washington law, potentially within the state. This could involve negotiation or legal determination if a dispute arises. The Washington Addendum to both the Development Agreement and the Franchise Agreement explicitly states that any conflicting provisions are superseded, ensuring compliance with Washington's franchise regulations.
Prospective Chicken Guy franchisees in Washington should be aware that the standard dispute resolution terms in the Franchise Agreement do not apply to them. They should seek legal advice to understand their rights and obligations regarding dispute resolution under Washington law. This ensures that they are prepared in case any disputes arise during the course of their franchise agreement.