In the event of conflicting laws, which law prevails for an Aerus franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- **1.
Conflict of Laws.** In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
- **2.
Franchisee Bill of Rights.** RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise.
There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor.
Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
- **3.
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.
- **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).
- **5.
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 claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the Washington Franchise Investment Protection Act, chapter 19.100 RCW, will prevail if there is a conflict of laws. This means that if any provision of the franchise agreement contradicts Washington state law regarding franchise investments, the state law will take precedence.
This is significant for prospective Aerus franchisees, particularly those operating in Washington, as it ensures that certain rights and protections afforded by state law cannot be overridden by the franchise agreement. For example, RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning the franchisee's relationship with Aerus, including termination and renewal terms. Franchisees should be aware that franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
Furthermore, any release or waiver of rights in the franchise agreement that attempts to waive compliance with the Washington Franchise Investment Protection Act is void unless it meets specific conditions, such as being part of a negotiated settlement with independent legal representation after the agreement is in effect, as per RCW 19.100.220(2). Similarly, releases or waivers executed in connection with a renewal or transfer of a franchise are also void unless they comply with RCW 19.100.220(2). Provisions that unreasonably restrict the statute of limitations for claims under the Washington Franchise Investment Protection Act or limit rights or remedies under the Act, such as the right to a jury trial, may not be enforceable.
In any arbitration or mediation involving a franchise purchased in Washington, the location will be in Washington, or a place mutually agreed upon, or as determined by the arbitrator or mediator. Additionally, if litigation is not precluded by the franchise agreement, a franchisee can bring an action related to the sale of franchises or a violation of the Washington Franchise Investment Protection Act in Washington. This ensures that franchisees have a local venue for resolving disputes related to their franchise agreement.