Where will arbitration or mediation take place for a Fat Shack franchise purchased in Washington?
Fat_Shack 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 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, for any franchise purchased in Washington, the arbitration or mediation site will be in the state of Washington. However, the location can be a place mutually agreed upon at the time of the arbitration or mediation. The arbitrator or mediator can also determine the location at the time of arbitration or mediation.
In addition, if the franchise agreement does not preclude litigation, 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 means that if a Fat Shack franchisee in Washington has a dispute with the franchisor that goes to arbitration or mediation, it will likely occur in Washington, which can save on travel costs and make it easier to participate. However, there is flexibility to agree on a different location or have the arbitrator/mediator decide. The franchisee also has the right to bring certain legal actions in Washington if litigation is not precluded.