Under what conditions can the arbitration or mediation site for a Healthsource Chiropractic franchise in Washington be somewhere other than Washington?
Healthsource_Chiropractic 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 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, for a franchise purchased in Washington, the arbitration or mediation site can be outside of Washington under specific conditions. The primary location for arbitration or mediation is within Washington state. However, the site can be in a different location if mutually agreed upon by all parties involved at the time of the arbitration or mediation. Additionally, the arbitrator or mediator has the authority to determine a different location at the time of the proceedings.
This means that a Healthsource Chiropractic franchisee in Washington might have to travel outside the state for arbitration or mediation if they agree to it, or if the arbitrator or mediator decides it's appropriate. This could potentially increase the costs associated with resolving disputes, as the franchisee may incur travel and accommodation expenses. It is important for prospective franchisees to understand this aspect, as it can impact their financial and logistical planning in case of any future disputes.
It's also worth noting that if litigation is not precluded by the franchise agreement, a franchisee can bring an action or proceeding related to the sale of franchises or violations of the Washington Franchise Investment Protection Act in Washington. This provides an additional layer of protection for franchisees, allowing them to pursue legal action within their state under certain circumstances. This clause ensures that franchisees have a local venue for specific types of disputes, regardless of any arbitration or mediation agreements.