factual

In the event of a conflict of laws regarding an Annex Brands franchise, which law will prevail?

Annex_Brands Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (2) In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
  • (3) RCW 19.100.180 may supersede the Franchise Agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the Franchise Agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
  • (4) 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 franchise, or a violation of the Washington Franchise Investment Protection Act, in Washington.
  • (5) A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent legal counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.

Source: Item 23 — Receipts (FDD pages 110–299)

What This Means (2025 FDD)

According to Annex Brands' 2025 Franchise Disclosure Document, in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail. This means that if there is a disagreement about which laws apply to the franchise agreement, the laws of Washington State will be used to resolve the conflict.

Additionally, RCW 19.100.180 may supersede the Franchise Agreement in the franchisee's relationship with Annex Brands, particularly in areas of termination and renewal. Court decisions may also supersede the Franchise Agreement in these areas. This indicates that certain statutory provisions and judicial rulings can override the terms of the franchise agreement, offering additional protection or clarification for the franchisee.

For franchisees purchasing in Washington, any arbitration or mediation will occur in Washington, or a mutually agreed upon location, or as determined by the arbitrator or mediator. Franchisees may bring legal action in Washington for issues arising from the sale of the franchise or violations of the Washington Franchise Investment Protection Act, if litigation is not precluded by the franchise agreement. Furthermore, franchisees cannot waive their rights under the Washington Franchise Investment Protection Act, except in negotiated settlements with independent legal counsel. Provisions that unreasonably restrict the statute of limitations or rights to a jury trial may not be enforceable. These stipulations provide franchisees with specific legal protections and recourse within Washington State.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.