In the event of conflicting laws, which laws prevail for an Amerispec Inspection Services franchise in Washington?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
ined 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.
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
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- A release or waiver of rights excluded by a franchisee will not include rights under the Washington Franchise Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
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- Transfer fees are collectable to the extent that they reflect the Company's reasonable estimated or actual costs in effecting a transfer.
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- Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation).
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will take precedence if there is a conflict of laws affecting a franchise purchased in Washington. This means that the laws of Washington state are designed to protect franchisees, and these protections will be prioritized over other conflicting laws.
This clause is significant for prospective Amerispec Inspection Services franchisees in Washington because it ensures that the state's franchise laws will be upheld in disputes. For example, the FDD mentions that a release or waiver of rights excluded by a franchisee will not include rights under the Washington Franchise Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. This ensures franchisees cannot unknowingly waive their rights under the Act.
Additionally, the FDD states that provisions that unreasonably restrict or limit the statute of limitations period for claims under the Act, rights, or remedies under the Act, such as the right to a jury trial, may not be enforceable. This protects the franchisee's ability to pursue legal action within a reasonable timeframe and ensures access to legal remedies.
Furthermore, noncompetition covenants are addressed, stating that any provisions conflicting with limitations outlined in RCW 49.62.020 and RCW 49.62.030 are void and unenforceable in Washington. Specifically, a noncompetition covenant is void and unenforceable against an employee of a franchisee unless the employee's earnings exceed $100,000 per year (adjusted annually for inflation) or against an independent contractor of a franchisee unless their earnings exceed $250,000 per year (adjusted annually for inflation). This provides clarity and protection for employees and independent contractors working with an Amerispec Inspection Services franchise in Washington.