In Washington, where will arbitration or mediation take place involving a Dq Treat franchise purchased in Washington?
Dq_Treat 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 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, if a Dq Treat franchisee purchases a franchise in Washington, any arbitration or mediation will occur in one of three possible locations. The primary location is within the state of Washington. Alternatively, the arbitration or mediation can take place in a location mutually agreed upon by both the franchisee and Dq Treat at the time of the arbitration or mediation. Lastly, the location can be determined by the arbitrator or mediator during the arbitration or mediation proceedings.
This addendum ensures that Dq Treat franchisees in Washington are not forced to travel to a distant or inconvenient location for dispute resolution. By allowing arbitration or mediation to occur within Washington, or at a mutually agreed-upon location, the process becomes more accessible and cost-effective for the franchisee. This is particularly important considering the power imbalance that can exist between a large franchisor and an individual franchisee.
Furthermore, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee can bring legal action related to the sale of the franchise or violations of the Washington Franchise Investment Protection Act in Washington. This provision reinforces the franchisee's right to seek legal recourse within their home state, providing an additional layer of protection under Washington law.
It is important for prospective Dq Treat franchisees in Washington to understand these specific protections afforded to them under Washington law, as outlined in the addendum to the Operating Agreement. This knowledge can empower them to make informed decisions and protect their interests throughout the franchise relationship.