For a Ledgers franchise in Washington, what is the effect of the Washington Franchise Investment Protection Act on the site of arbitration or mediation?
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, the Washington Addendum modifies the franchise agreement for franchisees in Washington state. Specifically, regarding arbitration or mediation, the site must be in Washington, or a location mutually agreed upon at the time of the arbitration or mediation. Alternatively, the arbitrator or mediator can determine the location during the proceedings.
This stipulation is a direct result of the Washington Franchise Investment Protection Act, which aims to protect franchisees by ensuring a more accessible and potentially fairer legal process. Without this protection, Ledgers could require arbitration or mediation to occur in a location that is more convenient or advantageous for them, potentially increasing costs and logistical challenges for the franchisee.
Furthermore, the addendum states that if litigation is not precluded by the franchise agreement, a franchisee can bring an action or proceeding arising out of or related to the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington. This provision ensures that Washington franchisees have the option to pursue legal action within their own state, providing an additional layer of protection and convenience.