Where will arbitration or mediation take place for a My Salon Suite franchise purchased in Washington?
My_Salon_Suite 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 17 — (r) of the FDD and Section 13 of the Franchise Agreement disclose the existence of certain covenants restricting competition to which Franchisee must agree. The Commissioner has held that covenants restricting competition contrary to Section 9-08-06 of the North Dakota Century Code, without further disclosing that such covenants may be subject to this statue, are unfair, unjust, or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The FDD and the Franchise Agreement are amended accordingly to the extent required by law. (FDD pages 230–274)
What This Means (2025 FDD)
According to the 2025 My Salon Suite Franchise Disclosure Document, for any arbitration or mediation involving a franchise purchased in Washington, the location will be in Washington state. However, the location can be a place mutually agreed upon at the time of the arbitration or mediation. Alternatively, the arbitrator or mediator can determine the location at the time of arbitration or mediation.
This means that franchisees who purchase a My Salon Suite franchise in Washington have some protection regarding where disputes are resolved. While the default location is Washington, there is room for negotiation or for the arbitrator/mediator to decide based on the specifics of the case. This can be beneficial for franchisees as it can reduce travel costs and ensure the process takes place in a location familiar with Washington state law.
Additionally, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee can 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 franchisees in Washington, allowing them to pursue legal action within the state under certain circumstances.