How does the Washington Franchise Investment Protection Act protect Angry Chickz franchisees?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document 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.
- **1.
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.
- **2.
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.
- **3.
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.
- **4.
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).
- **5.
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.
- **6.
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.
- **7.
Termination by Franchisee.** The franchisee may terminate the franchise agreement under any grounds permitted under state law.
- **8.
Certain Buy-Back Provisions.** Provisions in franchise agreements or related agreements that permit the franchisor to repurchase the franchisee's business for any reason during the term of the franchise agreement without the franchisee's consent are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause.
- **9.
Fair and Reasonable Pricing.** Any provision in the franchise agreement or related agreements that requires the franchisee to purchase or rent any product or service for more than a fair and reasonable price is unlawful under RCW 19.100.180(2)(d).
- **10.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, several provisions within the addendum for the state of Washington aim to protect franchisees under the Washington Franchise Investment Protection Act. In the event of conflicting laws, the Washington Franchise Investment Protection Act will take precedence. The Franchisee Bill of Rights, specifically RCW 19.100.180, may override aspects of the franchise agreement related to the franchisee's relationship with Angry Chickz, including termination and renewal terms.
Additionally, the addendum addresses dispute resolution. For any arbitration or mediation involving a franchise purchased in Washington, the venue must be in Washington, or a location mutually agreed upon, or as determined by the arbitrator or mediator. If litigation is not precluded by the franchise agreement, franchisees can initiate actions related to franchise sales or violations of the Washington Franchise Investment Protection Act within Washington.
Furthermore, any release or waiver of rights that requires a franchisee to waive compliance with the Washington Franchise Investment Protection Act is void, unless it is part of a negotiated settlement with independent legal representation after the franchise agreement is already in effect, as per RCW 19.100.220(2). This protection extends to releases or waivers connected to franchise renewals or transfers, with the same exception for negotiated settlements. The statute of limitations period for claims under the Washington Franchise Investment Protection Act cannot be unreasonably restricted, and rights such as the right to a jury trial cannot be waived. Transfer fees can only reflect Angry Chickz's reasonable costs in facilitating the transfer. Franchisees also have the right to terminate the franchise agreement on grounds permitted by state law. Provisions allowing Angry Chickz to repurchase the franchisee's business without consent during the franchise term are unlawful, unless the termination is for good cause. Finally, franchisees cannot be forced to purchase or rent products or services at unfair prices, as this is unlawful under RCW 19.100.180(2)(d).