Where will arbitration or mediation take place for a Crisp & Green franchise purchased in Washington?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 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 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, if a franchisee purchases a franchise in Washington and a dispute arises requiring arbitration or mediation, the location of these proceedings is subject to specific conditions. 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 by both the franchisee and Crisp & Green at the time of the arbitration or mediation. Alternatively, the location can be determined by the arbitrator or mediator during the arbitration or mediation proceedings.
This stipulation is particularly relevant for prospective Crisp & Green franchisees in Washington as it ensures that arbitration or mediation will occur within the state, unless both parties agree otherwise or the arbitrator/mediator decides on a different location. This can reduce travel costs and logistical challenges for the franchisee. It also provides a degree of protection under Washington's franchise laws, as any litigation not precluded by the franchise agreement allows the franchisee to bring action in Washington concerning franchise sales or violations of the Washington Franchise Investment Protection Act.
It is important to note that Washington law, specifically the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, takes precedence in the event of any conflict of laws. This means that the rights and protections afforded to franchisees under Washington law will supersede any conflicting terms in the franchise agreement. Additionally, certain provisions in the franchise agreement, such as those that unreasonably restrict the statute of limitations for claims under the Act or rights to a jury trial, may not be enforceable. Prospective franchisees should carefully review the Washington Addendum to fully understand their rights and obligations under Washington law.