What conditions must be met for a release or waiver of rights in an Aerus franchise agreement to be valid in Washington?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- **4.
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 after the agreement is in 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 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement or related documents, which aims to obligate the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act, is generally considered void.
However, there are specific conditions under which such a release or waiver can be valid. It must be executed as part of a negotiated settlement after the franchise agreement is already in effect. Additionally, both parties, Aerus and the franchisee, must be represented by independent legal counsel during these negotiations. This requirement is in accordance with RCW 19.100.220(2), a section of the Revised Code of Washington.
Furthermore, any release or waiver executed in connection with the renewal or transfer of a franchise is also void unless it adheres to the conditions specified in RCW 19.100.220(2). This means that even during a renewal or transfer, the franchisee's rights under the Washington Franchise Investment Protection Act are protected unless the negotiated settlement and independent counsel requirements are met. This ensures that franchisees are not pressured into unknowingly relinquishing their legal protections under the Act.