Is the non-binding mediation for City Publications required to be handled by the American Arbitration Association?
City_Publications 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.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
Based on the 2025 City Publications Franchise Disclosure Document, the document does not specify that non-binding mediation must be handled by the American Arbitration Association. However, the Washington Addendum provides some information regarding arbitration or mediation.
According to the Washington Addendum, in any arbitration or mediation involving a franchise purchased in Washington, the site for arbitration or mediation 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.
This suggests that while the FDD doesn't mandate the American Arbitration Association, the location and potentially the mediator/arbitrator can be determined at the time of the dispute, especially for franchises in Washington. A prospective franchisee should consult with legal counsel to fully understand their rights and obligations regarding mediation and arbitration, and to determine if there are any state-specific laws that may affect the process.