If a Crisp & Green franchise is purchased in Washington, where should the arbitration site be?
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.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, if a franchise is purchased in Washington, the arbitration or mediation site will be in the state of Washington. However, there are two exceptions to this rule. The first is if both parties mutually agree to a different location at the time of the arbitration or mediation. The second exception is if the arbitrator or mediator determines a different location at the time of arbitration or mediation.
This stipulation is part of an addendum to the franchise agreement that specifically addresses compliance with Washington state statutes and regulations. It acknowledges that the Washington Franchise Investment Protection Act (Chapter 19.100 RCW) may supersede the franchise agreement in certain areas, including termination and renewal rights. Additionally, court decisions in Washington could also take precedence over the franchise agreement in these areas.
This information is crucial for prospective Crisp & Green franchisees in Washington as it clarifies their rights regarding dispute resolution. It ensures that arbitration or mediation proceedings will generally occur within the state, providing a more accessible and potentially less costly venue for resolving disputes. However, franchisees should be aware of the exceptions where the location could change based on mutual agreement or the arbitrator's decision.