Where will arbitration or mediation take place for a Chicken Guy franchise purchased in Washington?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | Sections 31.A & 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. |
As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
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 standard Franchise Agreement stipulates that mediation and arbitration will occur in Orlando, Florida, where Chicken Guy's principal offices are located. However, this is subject to state law. For franchisees in Washington, the FDD includes a specific addendum that may override the standard agreement.
The Washington addendum states that any provisions in the franchise agreement that conflict with Washington state law are void and unenforceable in Washington. This means that while the standard agreement specifies Orlando, Florida as the location for dispute resolution, the Washington addendum takes precedence.
Therefore, prospective Chicken Guy franchisees in Washington should be aware that the enforceability of the arbitration and mediation location clause (Orlando, Florida) is questionable and potentially void under Washington law. It is advisable to consult with a legal professional to understand their rights and obligations regarding dispute resolution, considering the interplay between the standard Franchise Agreement and the Washington addendum.