Under what circumstances does the Amendment to the Atwell Suites License Agreement regarding the Washington Franchise Investment Protection Act apply?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum may apply if: (a) the offer to sell a franchise/license is accepted in Washington; (b) the purchaser of the franchise/license is a resident of Washington; and/or (c) the franchised/licensed business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
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- Site of Arbitration, Mediation, and/or Litigation.
In any arbitration or mediation involving a license 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 License, a licensee may bring an action or proceeding arising out of or in connection with the sale of franchises/licenses, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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- General Release.
A release or waiver of rights in the License or related agreements purporting to bind a licensee to waive compliance with any provision the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the License is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.200(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).
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- Statute of Limitations and Waiver of Jury Trial.
Provisions contained in the License 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.
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- Franchisee Bill of Rights.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the Amendment to the Atwell Suites License Agreement pursuant to the Washington Franchise Investment Protection Act applies under specific conditions related to the location and residency of the franchisee.
The amendment is applicable if the offer to sell the Atwell Suites franchise is accepted in Washington, if the purchaser of the franchise is a resident of Washington, or if the franchised business is to be located or operated, either wholly or partly, in Washington. This ensures that franchisees who are either residents of Washington or operating their Atwell Suites location within the state receive the protections afforded by Washington's franchise laws.
This amendment addresses key aspects of the franchise relationship, including the site of arbitration, mediation, or litigation, stipulating that any such proceedings involving a license purchased in Washington will occur in Washington, unless otherwise agreed upon. It also addresses general releases, stating that waivers of rights that do not comply with the Washington Franchise Investment Protection Act are void unless executed under specific conditions, such as a negotiated settlement with independent counsel. Furthermore, the amendment clarifies that provisions in the license agreement that unreasonably restrict the statute of limitations for claims under the Washington Franchise Investment Protection Act or rights to a jury trial may not be enforceable.
In essence, this amendment tailors the standard Atwell Suites franchise agreement to comply with Washington state law, providing additional protections and rights to franchisees operating within Washington's jurisdiction. Prospective franchisees should carefully review this amendment to understand their rights and obligations under Washington law.