What is the exception to the rule that a release or waiver of rights is void for a 360 Painting franchise agreement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
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- General Release. A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement afterthe agreement isin effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 FDD, a general release or waiver of rights within a 360 Painting franchise agreement that compels a franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act, including its rules and orders, is typically void. However, there is an exception to this rule.
The exception occurs when the release is executed as part of a negotiated settlement after the franchise agreement is already in effect. For this exception to apply, both parties, the franchisor and the franchisee, must be represented by independent legal counsel. This ensures that the franchisee's rights are protected during the negotiation and settlement process.
This provision is in accordance with RCW 19.100.220(2), a section of the Revised Code of Washington. Additionally, any release or waiver connected to a franchise renewal or transfer is also void, except as provided for in the same section, RCW 19.100.220(2). This ensures franchisees cannot be forced to unknowingly give up their legal protections.