What is the effect of waiving the right to a jury trial in the Alloy Franchise Agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17
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- The Franchise Agreement contains a waiver of punitive damages and jury trial provision. These provisions may not be enforceable under California law.
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- 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 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the effect of waiving the right to a jury trial depends on the state in which the franchisee operates. For franchisees subject to the California Franchise Investment Law, the waiver of a jury trial provision in the Franchise Agreement may not be enforceable under California law. This means that despite any waiver in the agreement, a California franchisee may still have the right to a jury trial.
Similarly, for franchisees in Washington, provisions in the franchise agreement or related agreements that affect rights or remedies under the Washington Franchise Investment Protection Act, such as a right to a jury trial, may not be enforceable if they unreasonably restrict or limit those rights. This suggests that a waiver of a jury trial could be challenged and deemed unenforceable if it unduly restricts the franchisee's rights under Washington law.
These stipulations highlight the importance of franchisees understanding their rights under state laws, as franchise agreement provisions can be superseded by these laws. Alloy franchisees should consult with legal counsel to understand the specific implications of these waivers in their state and to ensure their rights are protected.