What is the effect of the Washington Franchise Investment Protection Act on provisions in the Angry Chickz franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
tors is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).
- 18. Advisory Regarding Franchise Brokers. Under the Washington Franchise Investment Protection Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise.
ADDENDUM TO ANGRY CHICKZ FRANCHISING LLC FRANCHISE AGREEMENT (State of Washington)
| THIS ADDENDUM is entered into as of, 20 between ANGRY | |
|---|---|
| CHICKZ FRANCHISING LLC, a California limited liability company ("Company"), and | |
| , a ("Franchisee"), with reference to the | |
| following: |
1. Background. The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise 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 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.
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 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.
5. 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).
6. Statute of Limitations and Waiver of Jury Trial. Provisions contained in the Franchise Agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
7. Transfer Fees. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
8. Termination by Franchisee. The franchisee may terminate the Franchise Agreement under any grounds permitted under state law.
**9.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Washington Franchise Investment Protection Act significantly impacts franchise agreements for franchises sold or operated in Washington. An addendum to the franchise agreement specifically addresses Washington law, and its provisions take precedence over conflicting terms in the standard agreement. This addendum applies if the franchise offer is accepted in Washington, the purchaser is a Washington resident, or the franchised business operates in Washington.
Several key provisions of the Washington Franchise Investment Protection Act can override the standard Angry Chickz franchise agreement. The Act ensures that franchisees cannot waive compliance with the Act, except under specific conditions such as a negotiated settlement with independent counsel. Certain provisions in the franchise agreement, such as those restricting communication with regulators or setting unfair pricing, are deemed unlawful. Additionally, the Act affects aspects like the location of arbitration, mediation, or litigation, which must occur in Washington unless otherwise agreed upon.
Specifically, the Franchisee Bill of Rights (RCW 19.100.180) may supersede provisions related to termination and renewal. Releases or waivers that do not comply with the Act are void, especially those executed without independent counsel or before a settlement. Moreover, clauses that unreasonably limit the statute of limitations for claims or waive the right to a jury trial may not be enforceable. These stipulations collectively strengthen franchisee rights within Washington, providing additional legal protections beyond the standard franchise agreement terms offered by Angry Chickz.