Under what conditions is a release or waiver of rights by an Aerus franchisee considered void in Washington?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ion 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
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 is generally considered void in Washington state if it requires the franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act.
However, there are two exceptions to this rule. The first exception is when the release or waiver is executed as part of a negotiated settlement after the franchise agreement is already in effect. In this case, the waiver is valid only if both parties are represented by independent legal counsel. This ensures that the franchisee is making an informed decision with the advice of an attorney who is looking out for their best interests.
The second exception relates to releases or waivers executed in connection with a renewal or transfer of the franchise. Similar to the first exception, these releases are also void unless they meet the conditions specified in RCW 19.100.220(2), which likely involves similar requirements for independent legal representation and a negotiated settlement. This provision aims to protect franchisees from being coerced into giving up their rights during critical junctures like renewal or transfer, where they might feel pressured to agree to unfavorable terms.