In Washington, what law prevails in the event of a conflict of state laws during arbitration involving a Fitstop franchise?
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.
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- Franchisee may have the right to terminate the franchise relationship should the franchisor fail to perform its duties or under applicable law
These provisions shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Washington Franchise Investment Protection Act are met independently without reference to these Additional Disclosures. The Additional Disclosures shall have no force or effect if such jurisdictional requirements are not met.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, for franchises purchased in Washington, in the event of a conflict of state laws during arbitration, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail. This means that if there is a disagreement between the laws of Washington and the laws of another state, the Washington Franchise Investment Protection Act will be the law that is applied during the arbitration process.
This protection is significant for Fitstop franchisees in Washington because it ensures that their rights under Washington state law are upheld during arbitration, even if the franchise agreement specifies another state's laws. 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.
It is important to note that these provisions are effective only if the jurisdictional requirements of the Washington Franchise Investment Protection Act are met independently, without relying on these additional disclosures. If these jurisdictional requirements are not met, the additional disclosures will have no force or effect. Therefore, prospective Fitstop franchisees in Washington should ensure they meet these jurisdictional requirements to benefit from the protections offered by the Washington Franchise Investment Protection Act.