Where will arbitration or mediation take place for a Sonesta Simply Suites franchise purchased in Washington?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 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 franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, for a franchise purchased in Washington, the arbitration or mediation site will be in the state of Washington. However, the location can be a place mutually agreed upon at the time of the arbitration or mediation. It can also be determined by the arbitrator or mediator at the time of arbitration or mediation.
This means that if a Sonesta Simply Suites franchisee in Washington has a dispute with the franchisor that goes to arbitration or mediation, the proceedings will generally take place within Washington state. This offers a degree of convenience and potentially reduces travel costs for the franchisee.
However, there is flexibility in the location. Both parties can agree to a different location outside of Washington, or the arbitrator/mediator can decide on a location. This flexibility could be beneficial if the dispute involves parties or evidence located outside of Washington. It is 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 franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.