What rules govern the mediation of commercial disputes for Deer Solution?
Deer_Solution 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.
Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following:
A. The Rhode Island Franchise Investment Act, R.I. Gen. Law Ch. 395 Sec. 19-28.1-14 provides that a provision in a Franchise Agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
B. Any general release as a condition of renewal, termination or transfer will be void with respect to claims under the Rhode Island Franchise Investment Act.
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- Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction," shall be amended by the addition of the following statement added to Article 18.G. of the Franchise Agreement:
- A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the rules governing mediation and dispute resolution vary based on the state in which the franchise operates. For instance, Maryland franchisees have the right to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of the standard arbitration clause in the franchise agreement. Similarly, any general release required as a condition of renewal, sale, or transfer of the franchise does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law.
For franchises purchased in Washington, the mediation site must be in Washington state or a location mutually agreed upon at the time of mediation, or as determined by the mediator. The Washington Franchise Investment Protection Act may also supersede the Franchise Agreement in areas of termination and renewal. Additionally, franchisees in Washington cannot waive rights under the Washington Franchise Investment Protection Act, except when executed pursuant to a negotiated settlement with independent counsel.
In Rhode Island, any provision restricting jurisdiction or venue to a forum outside the state or requiring the application of other state laws is void with respect to claims enforceable under the Rhode Island Franchise Investment Act. Similarly, any general release as a condition of renewal, termination, or transfer is void with respect to claims under the Rhode Island Franchise Investment Act. These state-specific amendments ensure that franchisees' rights are protected under their local franchise laws, regardless of what the standard Deer Solution franchise agreement stipulates.