Under what grounds can an Alloy franchisee terminate the franchise agreement in Washington?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Termination by Franchisee. The franchisee may terminate the franchise agreement under any grounds permitted under state law.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a franchisee in Washington State can terminate the franchise agreement based on any grounds permitted under state law. This is specified in the Washington Addendum to the Franchise Agreement. This addendum acknowledges that the franchisee's rights concerning the franchise relationship, including termination, are subject to the Washington Franchise Investment Protection Act (chapter 19.100 RCW).
This means that the standard termination clauses in the franchise agreement are superseded by Washington state law, providing additional protections for franchisees. It is important for prospective Alloy franchisees in Washington to understand the specific termination rights afforded to them under Washington law, as these rights may be broader than those outlined in the standard franchise agreement.
Furthermore, any release or waiver of rights that requires a franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act is void unless it meets specific conditions. These conditions include the release being part of a negotiated settlement after the agreement is in effect and both parties being represented by independent counsel, as per RCW 19.100.220(2). This ensures that franchisees cannot unknowingly or unfairly relinquish their legal rights during the franchise term.