What conditions must be met for an Alloy franchisee's release or waiver of rights to be valid when executed pursuant to a negotiated settlement in Washington?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement or related documents, which aims to obligate a franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act, is generally considered void.
However, there is an exception: such a release or waiver can be valid if it is executed as part of a negotiated settlement that occurs after the franchise agreement has taken effect.
For this exception to apply, both parties—Alloy and the franchisee—must be represented by independent legal counsel during the negotiation and execution of the settlement, in accordance with RCW 19.100.220(2). This ensures that the franchisee's rights are protected and that the settlement is fair and informed.