In Washington, where will arbitration or mediation take place involving a Cilantro Taco Grill franchise?
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 franchise in Washington, the arbitration or mediation site will be in Washington. However, the location can be a place mutually agreed upon at the time of the arbitration or mediation. The location could also be determined by the arbitrator or mediator at the time of arbitration or mediation.
This addendum clarifies that Washington state law and court decisions may supersede the franchise agreement, particularly in areas of termination and renewal. This means that certain clauses in the franchise agreement might not be enforceable in Washington if they conflict with state statutes.
Additionally, the addendum states that a franchisee in Washington can bring legal action related to the sale of franchises or violations of the Washington Franchise Investment Protection Act in Washington state, provided that litigation is not precluded by the franchise agreement. This provision ensures that franchisees have a local legal avenue for disputes arising from franchise sales or violations of the state's franchise laws.