Where must arbitration take place involving a Fitstop franchise purchased in Washington?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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- In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator. In the event of a conflict of state laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, for any arbitration involving a Fitstop franchise purchased in Washington, the arbitration site must be in one of three locations. The first option is within the state of Washington. The second option is a location mutually agreed upon by both parties (Fitstop and the franchisee) at the time of the arbitration. The third option is a location determined by the arbitrator.
This stipulation is important for prospective Fitstop franchisees in Washington because it clarifies where they may be required to participate in arbitration proceedings. It provides some flexibility, allowing for mutual agreement on a location or arbitrator determination, but also ensures the arbitration could occur within Washington state. This can significantly impact travel costs and logistical considerations for the franchisee.
It is also stated that in the event of a conflict of state laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will take precedence. This protects the franchisee by ensuring that Washington state law will be prioritized in any legal disputes, regardless of what the franchise agreement may state.