For Mrcool franchises purchased in Washington, where should mediation or arbitration take place?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
In any mediation or arbitration involving a franchise purchased in Washington, the mediation or arbitration site shall 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.
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 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, specifically the Washington State Franchise Agreement Amendment, any mediation or arbitration involving a franchise purchased in Washington must occur in one of three locations. The first option is within the State of Washington. The second option is a location mutually agreed upon by both parties involved at the time the arbitration or mediation is initiated. The third option is a location determined by the arbitrator or mediator during the arbitration or mediation proceedings.
This amendment ensures that Mrcool franchisees in Washington are not forced to travel to a distant or inconvenient location for dispute resolution. By providing these location options, the amendment aims to balance the interests of both the franchisee and the franchisor while adhering to Washington State law. This is a beneficial term for prospective franchisees in Washington, as it offers flexibility and protection regarding dispute resolution proceedings.
Additionally, the Washington FDD Amendment 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.