Under what conditions is a release or waiver of rights binding for a 360 Painting franchisee in Washington?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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 release or waiver of rights within the franchise agreement or related documents that compels a 360 Painting franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act, or its rules and orders, is generally void in Washington.
However, there is an exception. Such a release or waiver is binding if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. In this case, both parties must be represented by independent legal counsel, adhering to RCW 19.100.220(2).
Additionally, any release or waiver connected to the renewal or transfer of a 360 Painting franchise is also void unless it meets the conditions specified in RCW 19.100.220(2). This means that for a release related to a renewal or transfer to be valid, it must be part of a negotiated settlement, agreed upon after the initial agreement, and both 360 Painting and the franchisee must have independent legal representation.