When is a release or waiver void for an Alloy franchise in Washington?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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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 within the franchise agreement or related documents is generally void in Washington if it requires the franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act.
However, there is an exception: such a release or waiver is permissible if it's executed as part of a negotiated settlement after the franchise agreement is already in effect. To be valid, this settlement must be conducted with both Alloy and the franchisee being represented by independent legal counsel, adhering to the stipulations outlined in RCW 19.100.220(2).
Furthermore, any release or waiver connected to the renewal or transfer of an Alloy franchise is also considered void, unless it meets the same conditions specified in RCW 19.100.220(2), requiring a negotiated settlement with independent counsel. This ensures that franchisees are not pressured into relinquishing their rights without proper legal representation and informed consent.