In the event of conflicting laws, which law prevails for an Alloy franchise in Washington?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
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- 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.
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- 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.
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- 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.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Washington Addendum clarifies which laws govern the franchise if there is a conflict. Specifically, if an Alloy franchise is offered and accepted in Washington, if the purchaser resides in Washington, or if the franchise is operated in Washington, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW, will take precedence over any conflicting laws. This ensures that franchisees in Washington are protected by their state's franchise laws.
This protection extends to the Franchisee Bill of Rights outlined in RCW 19.100.180, which may supersede certain provisions in the franchise agreement regarding the franchisee's relationship with Alloy, particularly in areas like termination and renewal. Additionally, court decisions may also override aspects of the franchise agreement related to the franchisee-franchisor relationship. Franchisees should be aware that the franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
Furthermore, the addendum specifies that any arbitration or mediation involving a franchise purchased in Washington must occur within the state, or at a mutually agreed-upon location, or as determined by the arbitrator or mediator. Franchisees also have the right to bring legal action in Washington for issues arising from the sale of the franchise or violations of the Washington Franchise Investment Protection Act, provided that litigation is not precluded by the franchise agreement. This addendum aims to protect the rights and interests of Alloy franchisees operating in Washington by ensuring that state laws and regulations are prioritized in case of conflicts.