What does the Washington Addendum modify for an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
WASHINGTON ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT, THE FRANCHISE AGREEMENT, AND ALL RELATED AGREEMENTS
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
-
- Conflict of Laws. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
-
- 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.
-
- Site of Arbitration, Mediation, and/or Litigation. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
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.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Washington Addendum modifies the Franchise Disclosure Document, the franchise agreement, and all related agreements for franchisees in Washington. This addendum is an integral part of these documents and applies if the franchise offer is accepted in Washington, the purchaser is a Washington resident, or the franchised business will operate in Washington.
The addendum addresses three key areas. First, in case of conflicting laws, the Washington Franchise Investment Protection Act will take precedence. Second, the franchisee's bill of rights under RCW 19.100.180 may override certain provisions in the franchise agreement, especially concerning termination and renewal. Additionally, court decisions may also supersede the franchise agreement. Franchisees should be aware that state law always takes precedence over the franchise agreement.
Finally, the addendum specifies that any arbitration or mediation involving a franchise purchased in Washington must occur in Washington, or a location mutually agreed upon, or as determined by the arbitrator or mediator. Furthermore, if litigation is not precluded by the franchise agreement, a franchisee can bring legal action related to the sale of franchises or violations of the Washington Franchise Investment Protection Act in Washington.