Does the Washington Addendum modify the standard Cinnaholic franchise agreement regarding the site of arbitration, mediation, and/or litigation?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- **3.
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, the Washington Addendum does modify the franchise agreement regarding the site of arbitration, mediation, and/or litigation for franchises purchased in Washington. Specifically, the addendum states that the arbitration or mediation site will be in Washington, or a location mutually agreed upon at the time of arbitration or mediation, or as determined by the arbitrator or mediator.
Additionally, the addendum clarifies 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 ensures that Cinnaholic franchisees in Washington have the option to resolve disputes within their own state, providing a more accessible and potentially less costly legal venue.
This modification is important for prospective Cinnaholic franchisees in Washington as it provides them with certain legal protections and rights within their state. It ensures that they are not necessarily bound to arbitrate, mediate, or litigate disputes in a location that is inconvenient or cost-prohibitive. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and the Washington Franchise Investment Protection Act.