For an Engel & Volkers franchise purchased in Washington, where will arbitration or mediation take place?
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 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, if a franchisee purchases a franchise in Washington and a dispute arises requiring arbitration or mediation, the location of these proceedings is subject to specific rules. The arbitration or mediation will occur either within the state of Washington, 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 stipulation is particularly important for prospective Engel & Volkers franchisees in Washington because it ensures that dispute resolution processes are accessible and convenient. Franchisees are not necessarily required to travel to New York (where Engel & Volkers is located) or another distant location, which could significantly reduce the costs and logistical challenges associated with resolving disputes. The flexibility in choosing the location—whether by mutual agreement or arbitrator/mediator decision—provides additional protection for the franchisee.
It is also important to note that Washington state law may supersede certain provisions in the Franchise Disclosure Document or Franchise Agreement if inconsistencies exist, further safeguarding the rights of franchisees in Washington. Additionally, franchisees in Washington have the right to bring legal action in Washington if litigation is not precluded by the franchise agreement, especially concerning the sale of franchises or violations of the Washington Franchise Investment Protection Act.