Can an Alloy franchisee waive compliance with the Washington Franchise Investment Protection Act?
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).
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).
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a franchisee cannot waive compliance with the Washington Franchise Investment Protection Act unless specific conditions are met. Any release or waiver in the franchise agreement that attempts to waive compliance with the Act is void.
However, there is an exception: a franchisee can execute a release or waiver if it's part of a negotiated settlement after the franchise agreement is already in effect. In this case, the franchisee must be represented by independent legal counsel, adhering to RCW 19.100.220(2). This exception ensures that any waiver is made knowingly and voluntarily with the benefit of legal advice.
Furthermore, any release or waiver connected to the renewal or transfer of a franchise is also void unless it meets the same conditions specified in RCW 19.100.220(2). This provision aims to protect franchisees from being pressured into waiving their rights during critical junctures like renewal or transfer, ensuring fairness and informed decision-making.