When is a release or waiver of rights void for a 360 Painting franchise agreement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, if litigation is not precluded by the franchise agreement, a franchiseemaybringanactionorproceedingarisingoutoforinconnectionwith thesaleof franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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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).
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- Statute of Limitations and Waiver of Jury Trial. Provisions contained in the franchise agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claimsundertheWashingtonFranchise InvestmentProtectionAct,or rights orremediesundertheActsuch as a rightto a jury trial,may not be enforceable.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 FDD, a release or waiver of rights within the 360 Painting franchise agreement is void under specific circumstances, primarily concerning compliance with franchise investment protection acts. In Washington, any release or waiver that requires a franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act is void. However, there is an exception: a negotiated settlement is permissible if it occurs after the franchise agreement is already in effect and both parties have independent legal representation.
Moreover, any release or waiver connected to the renewal or transfer of a 360 Painting franchise in Washington is also void, except under the same conditions as above, where a negotiated settlement is reached with independent counsel after the agreement is in effect, as per RCW 19.100.220(2). This means that 360 Painting franchisees in Washington cannot be compelled to sign away their rights under the state's franchise laws unless these specific conditions are met.
For franchisees in Maryland, any statement, questionnaire, or acknowledgment signed cannot waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. Similarly, in Indiana, no representation or acknowledgment by the franchisee can act as a release, assignment, waiver, or estoppel that deprives the franchisee of rights or protections under the Indiana Deceptive Franchise Practices Law or relieve any person of liability under the Indiana Franchise Disclosure Law. These stipulations ensure that franchisees retain their legal rights and protections, preventing franchisors from using waivers to circumvent state franchise laws.
In Minnesota, a franchisor is prohibited from requiring a franchisee to assent to a general release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statute §§80C.01 – 80C.22. This ensures that franchisees retain their legal rights and protections, preventing franchisors from using waivers to circumvent state franchise laws. These state-specific addenda reflect a broader trend of protecting franchisees from potentially overreaching waivers that could undermine their rights and legal recourse.