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In Washington, where will the arbitration or mediation site be located for a Healthsource Chiropractic franchise?

Healthsource_Chiropractic 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 77–282)

What This Means (2025 FDD)

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, for any franchise purchased in Washington, the arbitration or mediation site will be located within the state of Washington. 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, or it can be determined by the arbitrator or mediator during the arbitration or mediation proceedings.

This disclosure is particularly important for prospective franchisees in Washington because it clarifies the legal venue for resolving disputes. It ensures that franchisees are not forced to travel to a distant location for arbitration or mediation, which could significantly increase their costs and inconvenience. The Washington Franchise Investment Protection Act aims to protect franchisees by ensuring a fair and accessible dispute resolution process.

Furthermore, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee can 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. This provision reinforces the franchisee's right to seek legal remedies within their own state, providing an additional layer of protection under Washington law. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and the Washington Franchise Investment Protection Act.

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.