For a Stretch Zone franchise purchased in Washington, where will the arbitration or mediation site be located?
Stretch_Zone 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 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 franchisee purchases a franchise in Washington, the arbitration or mediation site will be 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, Stretch Zone and the franchisee, at the time of the arbitration or mediation. The third option is a location determined by the arbitrator or mediator during the arbitration or mediation proceedings.
This addendum modifies the franchise agreement to align with Washington state law, which is a common practice to ensure compliance and protect franchisees' rights. The Washington Franchise Investment Protection Act takes precedence over conflicting provisions in the standard franchise agreement. This ensures that Stretch Zone franchisees in Washington are subject to the protections afforded by state law.
Additionally, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee in Washington 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. This provides an additional avenue for dispute resolution within the state.