For an Embassy Suites franchise purchased in Washington, where will arbitration or mediation take place?
Embassy_Suites 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 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, if a franchisee purchases a franchise in Washington and becomes involved in arbitration or mediation with the company, the location of these proceedings will be determined as follows. The arbitration or mediation site will be in Washington state, or at a location mutually agreed upon by both parties at the time of the arbitration or mediation. If no agreement is reached, the arbitrator or mediator will determine the location at the time of the proceedings.
This addendum to the franchise agreement ensures that Washington franchisees are not forced to travel to a distant or inconvenient location for dispute resolution. It provides several options for determining the location, prioritizing the franchisee's convenience and the principles of fairness. This is particularly important because franchise agreements often initially favor the franchisor in terms of legal proceedings.
Furthermore, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee can 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 for Embassy Suites franchisees in Washington, ensuring that they can pursue legal action within their own state under certain circumstances.