factual

For a Ledgers franchise in Washington, can the arbitration site be determined by the arbitrator at the time of arbitration?

Ledgers 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.

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to Ledgers' 2025 Franchise Disclosure Document, the Washington Addendum modifies the standard franchise agreement for franchisees in Washington state. Specifically, for any arbitration or mediation involving a Ledgers franchise purchased in Washington, the location of the proceedings will be determined in one of three ways.

First, the arbitration or mediation site can be in the state of Washington. Second, the site can be in a location mutually agreed upon by both parties (Ledgers and the franchisee) at the time the arbitration or mediation is initiated. Third, if no mutual agreement is reached, the arbitrator or mediator has the authority to determine the location at the time of the arbitration or mediation.

This stipulation in the Washington Addendum provides flexibility in determining the arbitration site, potentially offering convenience to the franchisee if the arbitrator or mediator chooses a location within Washington. However, it also carries the risk that the arbitrator or mediator could select a location outside of Washington, which may increase travel costs and logistical challenges for the franchisee. Franchisees should consider these possibilities and discuss preferred locations with Ledgers during the arbitration or mediation process.

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.