For a Southern Steer franchise purchased in Washington, where will the arbitration or mediation site be located?
Southern_Steer 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 and Multi-Unit Development, 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 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, if a franchisee purchases a Southern Steer franchise in Washington, the arbitration or mediation site will be located in one of three possible locations. The primary location is within the state of Washington. However, the location could also be a place mutually agreed upon by both parties (Southern Steer and the franchisee) at the time of the arbitration or mediation. Finally, the location could be determined by the arbitrator or mediator during the arbitration or mediation proceedings.
This clause provides some flexibility in determining the location of arbitration or mediation, which could be beneficial to both Southern Steer and the franchisee. Having the initial option of arbitrating or mediating in Washington state provides a local venue for the franchisee, potentially reducing travel costs and logistical challenges.
However, the ultimate decision could rest with the arbitrator or mediator, which introduces some uncertainty. A prospective franchisee should consider the potential implications of this clause and discuss it with legal counsel to fully understand their rights and obligations.