Under what conditions is a release or waiver of rights in the Alloy franchise agreement valid in Washington?
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 within the franchise agreement or related documents is generally void in Washington, as it would waive compliance with the Washington Franchise Investment Protection Act. However, there is an exception. Such a release or waiver is valid if it is executed as part of a negotiated settlement after the franchise agreement is already in effect.
For this exception to apply, both parties (Alloy and the franchisee) must be represented by independent legal counsel during the negotiation of the settlement. This ensures that the franchisee's rights are protected and that they are entering into the agreement with full knowledge of the implications. This requirement is in accordance with RCW 19.100.220(2), the Revised Code of Washington.
Furthermore, any release or waiver executed in connection with a renewal or transfer of an Alloy franchise is also generally void, except as provided for in RCW 19.100.220(2). This means that franchisees should be particularly cautious about signing any releases or waivers during the renewal or transfer process, as they may not be enforceable under Washington law unless they meet the specific conditions outlined in the statute.