Where will arbitration or mediation take place for a Cinnaholic franchise purchased in Washington?
Cinnaholic 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 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if a franchisee purchases a Cinnaholic franchise in Washington and a dispute arises requiring arbitration or mediation, the location for these proceedings will be in Washington state. However, there are exceptions. The location can be a place mutually agreed upon by both parties at the time of the arbitration or mediation. Alternatively, the arbitrator or mediator can determine the location during the proceedings.
This means that while Washington is the default location for dispute resolution, there is flexibility. Franchisees should be aware that agreeing to a location outside of Washington could potentially increase their costs and inconvenience, depending on where the alternative location is. The franchisee should carefully consider the implications of agreeing to a different location.
Furthermore, the Cinnaholic FDD states that if litigation is not precluded by the franchise agreement, a franchisee can bring an action or proceeding related to the sale of franchises or a violation of the Washington Franchise Investment Protection Act in Washington. This provides an additional avenue for resolving disputes within the state's jurisdiction, offering franchisees some protection under Washington law.