Where will arbitration or mediation take place for a Ledgers franchise purchased in Washington?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Site of Arbitration, Mediation, and/or Litigation.
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 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, if a franchisee purchases a Ledgers franchise in Washington and a dispute arises requiring arbitration or mediation, the location for these proceedings will be in Washington state. However, the exact location can also be a place mutually agreed upon by both parties at the time of the arbitration or mediation. If no agreement is reached, the arbitrator or mediator will determine the location during the proceedings.
This stipulation is part of the Washington Addendum to the Franchise Agreement, which addresses specific legal considerations for franchisees operating in Washington. This addendum takes precedence over any conflicting terms in the standard franchise agreement, ensuring compliance with the Washington Franchise Investment Protection Act.
Additionally, the FDD states that if litigation is not precluded by the franchise agreement, a Ledgers franchisee in Washington may initiate legal action in Washington if the action arises from the sale of the franchise or a violation of the Washington Franchise Investment Protection Act. This provides an additional layer of protection and legal recourse for franchisees within the state.
This clause is beneficial for prospective Ledgers franchisees in Washington as it ensures that any dispute resolution processes, such as arbitration or mediation, will occur within the state, unless otherwise agreed upon. This can reduce travel costs and logistical challenges, as well as ensure that the proceedings are subject to Washington law.