Where will arbitration or mediation take place for a Stretch Zone franchise purchased in Washington?
Stretch_Zone 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 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, if a franchise is purchased in Washington and arbitration or mediation is required, the location will be in Washington state. However, the specific location can also be a place mutually agreed upon by both parties at the time of the arbitration or mediation. Alternatively, the arbitrator or mediator can determine the location during the arbitration or mediation proceedings.
This addendum ensures that Washington franchisees are not forced to travel to a distant location for dispute resolution, which could be a significant financial and logistical burden. By allowing the arbitration or mediation to occur in Washington, Stretch Zone aims to provide a more accessible and fair process for franchisees in the state.
Furthermore, the Washington Addendum 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 provision reinforces the franchisee's right to pursue legal action within their home state, providing an additional layer of protection and convenience.