When is a release or waiver of rights regarding compliance with the Washington Franchise Investment Protection Act void for an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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- General Release. 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 release or waiver of rights in the franchise agreement or related agreements that attempts to waive compliance with any provision under the Washington Franchise Investment Protection Act, or any rules or orders under it, is generally void.
However, there is an exception: such a release or waiver is permissible if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. In this case, both parties must be represented by independent counsel, in accordance with RCW 19.100.220(2). This exception allows for settlements of disputes that may arise during the franchise term, provided both Alloy and the franchisee have legal representation to ensure fair negotiation.
Additionally, any release or waiver executed in connection with a renewal or transfer of a franchise is also void, except as provided for in RCW 19.100.220(2). This means that Alloy franchisees cannot be compelled to sign away their rights under the Washington Franchise Investment Protection Act when renewing or transferring their franchise, unless the specific conditions outlined in RCW 19.100.220(2) are met.