What is the impact of RCW 19.100.180 on the termination and renewal of an Alloy franchise in Washington?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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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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- Prohibitions on Communicating with Regulators. Any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, RCW 19.100.180, the Washington Franchise Investment Protection Act, has the potential to override specific terms within the franchise agreement that govern the relationship between Alloy and its franchisees, especially concerning the termination and renewal of the franchise. This means that certain provisions in the franchise agreement regarding termination or renewal may not be enforceable if they conflict with Washington state law.
For a prospective Alloy franchisee in Washington, this addendum offers a degree of protection by ensuring that the franchise agreement adheres to Washington law. Franchisees should be aware that the state law may provide additional rights or impose different requirements than what is outlined in the standard franchise agreement. This could impact the circumstances under which Alloy can terminate the agreement or the conditions for renewal.
Moreover, any provision within the franchise agreement that restricts a franchisee's ability to communicate with regulators is considered unlawful under RCW 19.100.180(2)(h). This ensures that franchisees can freely report concerns or violations to the appropriate authorities without fear of reprisal from Alloy. Franchisees should consult with a legal professional to fully understand their rights and obligations under Washington state law, as it relates to their franchise agreement with Alloy.