Where will arbitration or mediation take place for a Crdn franchise purchased in Washington?
Crdn 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 page 78)
What This Means (2025 FDD)
According to Crdn's 2025 Franchise Disclosure Document, for any franchise purchased in Washington, the arbitration or mediation site will be in the state of Washington. However, there are two exceptions to this rule. The location can be 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 means that while Crdn generally prefers arbitration or mediation to occur within Washington for franchises there, the final location can be subject to negotiation or the arbitrator's decision. A prospective franchisee should consider the potential costs and inconveniences of arbitrating or mediating outside of Washington, even though the initial stipulation is for it to be held within the state.
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 provides an alternative legal avenue within the state should litigation be permissible under the franchise agreement.