Under what condition are transfer fees collectable for an Angry Chickz franchise in Washington?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, a release or waiver of rights in the franchise agreement purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act is void. However, there is an exception to this rule.
Specifically, such a waiver is permissible when executed pursuant to a negotiated settlement after the agreement is already in effect. This exception requires that both parties, the franchisee and Angry Chickz, are represented by independent counsel during these negotiations. This ensures that the franchisee's rights are protected and that any settlement reached is fair and informed.
This condition aligns with the Washington Franchise Investment Protection Act, specifically RCW 19.100.220(2), which governs the circumstances under which a franchisee can waive their rights. This provision aims to prevent franchisors from using their potentially stronger bargaining position to force franchisees into unfair agreements, especially at the outset of the franchise relationship. The requirement for independent legal representation ensures that franchisees make informed decisions when waiving their rights in a settlement.