In the event of arbitration or mediation involving a Jersey Mikes franchise purchased in Washington, where will the arbitration or mediation site be located?
Jersey_Mikes 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 77–421)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the arbitration or mediation site for a franchise purchased in Washington will be in the state of Washington. However, there are two exceptions to this rule. The location can be a place mutually agreed upon by both parties at the time of the arbitration or mediation. Alternatively, the location can be determined by the arbitrator or mediator during the arbitration or mediation proceedings.
This stipulation is important for prospective Jersey Mikes franchisees in Washington because it ensures that arbitration or mediation will occur within the state, unless both parties agree otherwise or the arbitrator/mediator decides on a different location. This can save franchisees time and money by avoiding the need to travel to a different state for dispute resolution.
Furthermore, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee can bring an action or proceeding in Washington if it arises from the sale of franchises or a violation of the Washington Franchise Investment Protection Act. This provides an additional layer of protection for franchisees in the state.
It is important for potential franchisees to carefully review the franchise agreement and any state-specific addenda to fully understand their rights and obligations regarding dispute resolution. Understanding these provisions can help franchisees make informed decisions and protect their interests in the event of a conflict with Jersey Mikes.