factual

For a Fat Shack franchise purchased in Washington, where will the arbitration or mediation site be located?

Fat_Shack Franchise · 2025 FDD

Answer 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 arbitration or mediation involving a franchise purchased in Washington, the site will be in Washington state. However, there are two exceptions to this rule. The location can be a place mutually agreed upon at the time of the arbitration or mediation. Alternatively, the arbitrator or mediator can determine the location at the time of arbitration or mediation.

This means that if a Fat Shack franchisee in Washington has a dispute with the franchisor that goes to arbitration or mediation, the proceedings will generally take place within the state. This could be beneficial for the franchisee, as it would likely reduce travel costs and inconvenience compared to having to travel to another state for the proceedings.

However, it's important to note that the location can be changed if both parties agree or if the arbitrator or mediator decides on a different location. A franchisee should consider the potential implications of these exceptions and discuss them with legal counsel. Additionally, the FDD 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.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.