Where will arbitration or mediation take place for a Cool Binz franchise purchased in Washington?
Cool_Binz 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.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, for franchises purchased in Washington, any arbitration or mediation will occur in the state of Washington. However, the specific location can be adjusted. The arbitration or mediation site 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 arbitration or mediation proceedings.
This stipulation provides Cool Binz franchisees in Washington with some protection, ensuring that they are not forced to travel to a distant or inconvenient location for dispute resolution. The flexibility to agree on a location or have it determined by a neutral third party offers a more balanced approach.
Additionally, the FDD states that 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. This clause reinforces the franchisee's right to pursue legal action within their home state under specific circumstances, providing an additional layer of protection and legal recourse.