What is the effect of the Washington Franchise Investment Protection Act on provisions in the Angry Chickz Development Agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
- **1.
Background**.
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Development Agreement 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.
- **2.
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.
- **3.
Franchisee Bill of Rights.** RCW 19.100.180 may supersede provisions in the Development 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 Development Agreement or related agreements concerning your relationship with the franchisor.
Development agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
- **4.
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 Development 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.
- **5.
General Release.** A release or waiver of rights in the Development 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).
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the Washington Franchise Investment Protection Act significantly impacts the Development Agreement for franchises sold in Washington. An addendum to the Development Agreement specifically addresses how the Act modifies the agreement's provisions. This addendum applies if the franchise offer is accepted in Washington, the purchaser is a Washington resident, or the franchised business operates in Washington.
One key provision is that the Washington Franchise Investment Protection Act (chapter 19.100 RCW) will take precedence if there are conflicting laws. Additionally, RCW 19.100.180, which concerns the Franchisee Bill of Rights, may override parts of the Development Agreement or related agreements regarding the franchisee's relationship with Angry Chickz, particularly in areas like termination and renewal. Court decisions may also supersede the Development Agreement.
The addendum also specifies that for any arbitration or mediation involving a franchise purchased in Washington, the location must be in Washington or a place agreed upon by both parties during the arbitration or mediation. If litigation isn't precluded by the Development Agreement, a franchisee can bring legal action in Washington concerning the sale of franchises or violations of the Washington Franchise Investment Protection Act. Furthermore, any release or waiver of rights that requires the franchisee to waive compliance with the Washington Franchise Investment Protection Act is void unless it's part of a negotiated settlement after the agreement is in effect and both parties have independent legal representation, as per RCW 19.100.220(2).
In practical terms, these stipulations ensure that Washington franchisees receive the full protection of their state's franchise laws, preventing Angry Chickz from enforcing terms in the Development Agreement that might violate those laws. Prospective franchisees in Washington should carefully review the addendum and understand their rights under the Washington Franchise Investment Protection Act, consulting with an attorney if necessary, to ensure they are fully aware of the legal protections available to them.