If there are inconsistencies between the Auntie Annes Disclosure Document or Franchise Agreement and the Washington Franchise Investment Protection Act, which provisions will prevail in Washington?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the requirements of the Washington Franchise Investment Protection Act, Wash. Rev. Code §§ 19.100.180, the Disclosure Document for Auntie Anne's Franchisor SPV LLC for use in the State of Washington is amended as follows:
If any of the provisions in the Disclosure Document or Franchise Agreement are inconsistent with the relationship provisions of RCW 19.100.180 or other requirements of the Washington Franchise Investment Protection Act, the provisions of the Act will prevail over the inconsistent provisions of the Disclosure Document or Franchise Agreement (as applicable) with regard to any franchise sold in Washington.
In any arbitration involving a franchise purchased in Washington, the arbitration site will be either in Washington or in a place as mutually agreed-on at the time of the arbitration, or as determined by the arbitrator.
A release or waiver of rights signed by a franchisee will not include rights under the Act except when signed with a negotiated settlement after the Franchise Agreement is in effect and where the parties are represented by independent counsel.
Provisions such as those that unreasonably restrict or limit the statute of limitations period for claims under the Act and rights or remedies under the Act, such as a right to a jury trial, may not be enforceable.
The State of Washington has a statute, RCW 19.100.180, that may supersede the Franchise Agreement in your relationship with the franchisor, including the areas of termination and renewal of your franchise.
There also may be court decisions that supersede the Franchise Agreement in your relationship with the franchisor, including the areas of termination and renewal of your franchise.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, specifically the Washington Addendum, the Washington Franchise Investment Protection Act will take precedence over any conflicting terms in the Disclosure Document or Franchise Agreement for franchises sold in Washington. This means that if any provision in the Auntie Annes's documents contradicts the Washington Act, the Act's provisions will be enforced instead.
This protection extends to the relationship provisions outlined in RCW 19.100.180 and other requirements within the Washington Franchise Investment Protection Act. For example, the Act may supersede the Franchise Agreement in areas such as termination and renewal of the franchise. Additionally, court decisions in Washington could also override the Franchise Agreement in these areas.
Auntie Annes franchisees in Washington also have specific protections regarding dispute resolution. Any arbitration involving a franchise purchased in Washington must occur either in Washington or at a mutually agreed-upon location at the time of arbitration, or as determined by the arbitrator. Furthermore, any release or waiver of rights signed by a franchisee will not include rights under the Act unless it is part of a negotiated settlement after the Franchise Agreement is in effect and both parties are represented by independent counsel. Provisions that unreasonably restrict the statute of limitations for claims or rights under the Act, such as the right to a jury trial, may not be enforceable.