Where will arbitration or mediation take place for a Craters & Freighters franchise purchased in Washington?
Craters_Freighters 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 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, for any arbitration or mediation involving a franchise purchased in Washington, the location will be in Washington state. However, the location could also 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 means that if a Craters & Freighters franchisee in Washington has a dispute with the franchisor that goes to arbitration or mediation, the proceedings will likely occur within the state, providing a level of convenience and potentially reducing travel costs. The franchisee has some leverage to negotiate a mutually agreeable location.
It is important to note that this clause applies specifically to franchises purchased in Washington. The FDD also mentions 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.