Where will arbitration or mediation take place for a Circle K franchise purchased in Washington?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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. A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, for any arbitration or mediation involving a Circle K franchise purchased in Washington, the location will be in the state of Washington. However, there are a couple of exceptions. The location could be a place mutually agreed upon by both parties at the time of the arbitration or mediation. Alternatively, the arbitrator or mediator could determine the location at the time of the arbitration or mediation.
This means that while Washington is the primary location for dispute resolution, there is room for negotiation or for the arbitrator/mediator to decide on an alternative site. This flexibility could be beneficial if, for example, key witnesses or evidence are located outside of Washington, or if a neutral location is preferred to minimize travel costs and inconvenience.
It's important to note that the Washington Franchise Investment Protection Act may also impact the franchise agreement, potentially superseding certain provisions related to termination and renewal. Additionally, franchisees have the right to bring legal action in Washington for issues related to the sale of franchises or violations of the Washington Franchise Investment Protection Act, if litigation is not precluded by the franchise agreement.