factual

What is the purpose of the addendum to the Apricot Lane franchise agreement in the state of Washington?

Apricot_Lane Franchise · 2025 FDD

Answer from 2025 FDD Document

ADDENDUM TO THE COUNTRY VISIONS DISCLOSURE DOCUMENT AS REQUIRED BY THE STATE OF WASHINGTON

In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.

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.

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.

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 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.

Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer

Source: Item 23 — RECEIPTS (FDD pages 51–222)

What This Means (2025 FDD)

According to Apricot Lane's 2025 Franchise Disclosure Document, the addendum to the franchise agreement for the state of Washington is to ensure compliance with the Washington Franchise Investment Protection Act, Chapter 19.100 RCW. This addendum clarifies that in case of conflicting laws, the provisions of the Washington Franchise Investment Protection Act will take precedence.

The addendum specifies that RCW 19.100.180 may supersede the franchise agreement, particularly in matters of termination and renewal. It also addresses arbitration and mediation, stating that the venue for such proceedings involving a franchise purchased in Washington will be in Washington, or a location mutually agreed upon, or as determined by the arbitrator or mediator. Furthermore, if litigation is not precluded, a franchisee can bring an action in Washington for issues related to the sale of franchises or violations of the Washington Franchise Investment Protection Act.

Additionally, the addendum protects the franchisee's rights under the Washington Franchise Investment Protection Act by stating that a release or waiver of rights cannot include rights under this act, except in cases of a negotiated settlement with independent counsel after the agreement is in effect. It also notes that provisions that unreasonably restrict the statute of limitations or rights to a jury trial may not be enforceable. Finally, it clarifies that transfer fees are collectable only to the extent that they reflect the franchisor's reasonable costs in effecting a transfer.

In summary, the Washington addendum aims to protect Apricot Lane franchisees in Washington by ensuring that the state's franchise laws are upheld and that franchisees have appropriate legal recourse within the 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.