For a Ledgers franchise in Washington, what options are available for 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 site of arbitration or mediation for a franchise purchased in Washington can be in the state of Washington, a location mutually agreed upon by both parties at the time of arbitration or mediation, or a location determined by the arbitrator or mediator during the arbitration or mediation process. This stipulation is part of the Washington Addendum to the Franchise Disclosure Document, Franchise Agreement, and Related Agreements, and it takes precedence over any conflicting terms in those documents.
This means that franchisees in Washington have some protection regarding where disputes are resolved. They are not necessarily bound to a location chosen solely by Ledgers, which is a common clause in many franchise agreements. The franchisee can negotiate a mutually agreeable location or rely on the arbitrator/mediator to determine a fair site. This can save on travel costs and make the process more convenient for the franchisee.
Additionally, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee in Washington 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. This provides an additional layer of protection for Washington franchisees, allowing them to pursue legal action within their own state under certain circumstances.