What law prevails in the event of conflicting state laws during arbitration 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 provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will take precedence if there is a conflict of state laws.
This means that if the franchise agreement contains clauses that contradict Washington's franchise laws, the state law will be upheld during arbitration. This protection is significant for franchisees in Washington, as it ensures that their rights under the Washington Franchise Investment Protection Act are not undermined by conflicting terms in the franchise agreement.
Prospective Fitstop franchisees in Washington should be aware of this provision, as it offers an additional layer of legal protection. It is advisable to consult with an attorney to fully understand the implications of the Washington Franchise Investment Protection Act and how it applies to their specific franchise agreement.