What is the effect of the Washington Addendum on the Zoomin Groomin franchise agreement's provisions regarding site of arbitration, mediation, and/or litigation?
Zoomin_Groomin 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 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, the Washington Addendum modifies the franchise agreement regarding the location of arbitration, mediation, and litigation for franchises purchased in Washington. The addendum stipulates that any arbitration or mediation must occur in Washington state, or at a location mutually agreed upon by both parties at the time of the arbitration or mediation, or as determined by the arbitrator or mediator.
Furthermore, if litigation is not precluded by the franchise agreement, a Zoomin Groomin franchisee in Washington may initiate legal action related to the sale of franchises or violations of the Washington Franchise Investment Protection Act within the state of Washington. This ensures that franchisees have the option to resolve disputes within their home state, providing a more accessible and potentially less costly legal process.
This modification is significant for prospective Zoomin Groomin franchisees in Washington as it overrides any conflicting clauses in the standard franchise agreement that might require dispute resolution to take place outside of Washington. This provision aims to protect the franchisee's rights and provide a more convenient and fair legal environment.