For a Cilantro Taco Grill franchise purchased in Washington, where will arbitration or mediation take place?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
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- 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 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, if a franchisee purchases a Cilantro Taco Grill franchise in Washington, the location for any arbitration or mediation will be determined based on the following conditions. 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. Alternatively, the arbitrator or mediator can determine the location at the time of arbitration or mediation.
Additionally, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee has the option to initiate legal action or proceedings in Washington. This applies to matters arising from the sale of franchises or violations of the Washington Franchise Investment Protection Act.
This addendum ensures that franchisees in Washington are not forced to travel to another state to resolve disputes with Cilantro Taco Grill, which could significantly increase their legal costs. It also allows for flexibility in choosing a location that is convenient for both parties or determined by a neutral third party. Franchisees should consult with a legal professional to fully understand their rights under Washington law.