Where will the arbitration or mediation site be located for an Engel & Volkers franchise purchased in Washington?
Engel_Volkers 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 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, for any arbitration or mediation involving a franchise purchased in Washington, the site will be in Washington state. However, the location can also be a place mutually agreed upon at the time of the arbitration or mediation. Alternatively, the arbitrator or mediator can determine the location during the arbitration or mediation proceedings.
This means that franchisees in Washington have some protection regarding the location of dispute resolution proceedings. It prevents Engel & Volkers from forcing franchisees to travel to a distant or inconvenient location for arbitration or mediation. The franchisee can negotiate a mutually agreeable location or rely on the arbitrator/mediator to decide.
It is important to note that this clause applies specifically to arbitrations or mediations. The FDD also 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.