Can a Cool Binz franchisee in Washington bring an action in Washington if litigation is not precluded?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Cool Binz Franchise Disclosure Document, a franchisee in Washington may bring an action or proceeding in Washington if litigation is not precluded by the franchise agreement. This action must arise out of or be connected with the sale of franchises or a violation of the Washington Franchise Investment Protection Act.
This addendum to the franchise agreement ensures that Cool Binz franchisees in Washington have the ability to pursue legal action within their own state under certain conditions. This protects the franchisee's rights under the Washington Franchise Investment Protection Act. It also specifies that the franchisee does not have to travel to another state to resolve disputes through litigation.
This provision is beneficial for prospective Cool Binz franchisees in Washington as it provides a local legal avenue for resolving disputes related to the franchise agreement or violations of the Washington Franchise Investment Protection Act, assuming the franchise agreement does not preclude litigation. Franchisees should consult with legal counsel to fully understand their rights and options under the Washington Franchise Investment Protection Act.