factual

Where will arbitration or mediation take place for an Embassy Suites franchise purchased in Washington?

Embassy_Suites Franchise · 2025 FDD

Answer 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, you 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 22 — CONTRACTS (FDD page 97)

What This Means (2025 FDD)

According to Embassy Suites's 2025 Franchise Disclosure Document, for a franchise purchased in Washington, any arbitration or mediation will occur either in Washington state, at a location mutually agreed upon by both parties at the time of the arbitration or mediation, or as determined by the arbitrator or mediator during the proceedings. This amendment ensures that franchisees in Washington are not forced to travel to a distant location for dispute resolution, which could be a significant financial and logistical burden.

This provision is more favorable for the franchisee compared to some standard franchise agreements, which often stipulate a specific location (typically where the franchisor is based) for arbitration or mediation, regardless of where the franchise operates. The flexibility offered by Embassy Suites allows for a more equitable process, potentially reducing costs and inconvenience for the franchisee.

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. This offers an additional layer of protection and legal recourse within the state for Embassy Suites franchisees operating in Washington.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.