Where will arbitration or mediation take place for a Crown Gold Exchange franchise purchased in Washington?
Crown_Gold_Exchange 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 39–114)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, for any franchise purchased in Washington, the arbitration or mediation site will be in the state of Washington. However, 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 if a Crown Gold Exchange franchisee in Washington has a dispute with the franchisor that goes to arbitration or mediation, the proceedings will generally take place within Washington state. This can be beneficial for the franchisee, as it reduces travel costs and logistical challenges compared to having to arbitrate or mediate in another state.
However, there are exceptions. The franchisee and Crown Gold Exchange can agree to a different location at the time of the dispute, or the arbitrator or mediator can determine the location. This provides some flexibility, but it's important for prospective franchisees to understand that they may not always have a say in where the proceedings take place. 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.