Where must mediation occur for disputes with Face Foundrie?
Face_Foundrie 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.
- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," shall be amended by the addition of the following language:
The franchise agreement requires binding mediation or arbitration. The mediation or arbitration will occur in the city closest to our principal executive office. These provisions may not be enforceable under California law. You are encouraged to consult private legal counsel to determine the applicability of California and federal laws to the provisions of the franchise agreement restricting venue to a forum outside the State of California.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the location for mediation or arbitration involving a franchise purchased in Washington will be in the state of Washington. However, the specific site can be (1) in the state of Washington, (2) a place mutually agreed upon at the time of the arbitration or mediation, or (3) as determined by the arbitrator or mediator at the time of arbitration or mediation.
This stipulation regarding the location of mediation and arbitration is specific to franchises purchased in Washington. This means that if a Face Foundrie franchise is purchased in Washington, the franchisee has the right to have any mediation or arbitration proceedings take place within the state, unless both parties agree to an alternative location or the arbitrator/mediator decides on a different location.
For franchisees outside of Washington, the FDD indicates that the franchise agreement requires mediation or arbitration to occur in the city closest to Face Foundrie's principal executive office. However, the FDD also states that this provision may not be enforceable under California law. Prospective franchisees should consult with legal counsel to determine the applicability of state and federal laws regarding venue restrictions.