Under what conditions can a Bambu franchisee execute a release or waiver of rights under the Washington Franchise Investment Protection Act?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR WASHINGTON FRANCHISEES ONLY:
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act, RCW 19.100, 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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee in Washington can only execute a release or waiver of rights under the Washington Franchise Investment Protection Act (RCW 19.100) under specific conditions. This protection ensures that franchisees are not pressured into giving up their legal rights without proper representation and a fair settlement.
Specifically, such a release or waiver is permissible only when it is part of a negotiated settlement reached after the franchise agreement has already taken effect. This means the franchisee must already be operating under the franchise agreement when the settlement is negotiated.
Furthermore, for the release or waiver to be valid, both Bambu and the franchisee must be represented by independent legal counsel during the negotiation of the settlement. This requirement ensures that the franchisee has professional legal advice and is not being coerced into relinquishing their rights. This provision aims to protect Washington franchisees from unknowingly or unfairly waiving their rights under the state's franchise laws.