For a Management Recruiters franchise purchased in Washington, where will the arbitration or mediation site be located?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 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 the franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, for any arbitration or mediation involving a franchise purchased in Washington, the site will be in Washington state. However, the location can also be 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.
This means that if a Management Recruiters franchisee in Washington has a dispute that goes to arbitration or mediation, they will likely have the proceedings take place within the state. This can save on travel costs and time, as well as ensure the process is governed by Washington law.
However, there are exceptions. The franchisee and Management Recruiters can agree to a different location outside of Washington, or the arbitrator/mediator can decide on an alternative site. It is also important to note that 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 the franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.