Under what conditions can a Bambu franchisee in Washington bring an action or proceeding related to the sale of franchises or a violation of the Washington Franchise Investment Protection Act?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 may bring an action or proceeding related to the sale of franchises or a violation of the Washington Franchise Investment Protection Act in Washington if litigation is not precluded by the franchise agreement. This means that if the franchise agreement does not contain a clause preventing lawsuits, a franchisee can pursue legal action in Washington state courts regarding franchise sales or violations of the state's franchise law.
This provision is important for prospective Bambu franchisees in Washington because it clarifies their legal rights and options. Even if the franchise agreement has choice of law or venue provisions that might suggest disputes should be resolved elsewhere, this statement affirms the franchisee's ability to bring certain types of cases within Washington. This can be particularly relevant given that the Washington Franchise Investment Protection Act provides specific protections to franchisees.
It is important to note that this right is conditional. If the franchise agreement explicitly precludes litigation, then this right may be limited. Franchisees should carefully review the franchise agreement, particularly any clauses related to dispute resolution, arbitration, or choice of law, to fully understand their legal options. Additionally, the FDD states that the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail in the event of a conflict of laws.