In Washington, can a Bambu franchisee bring an action related to the sale of franchises or a violation of the Washington Franchise Investment Protection Act?

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, provided that litigation is not precluded by the franchise agreement. This means that despite any general clauses in the franchise agreement that might suggest otherwise, Washington franchisees retain the right to sue Bambu under specific circumstances related to franchise law violations. This protection is explicitly carved out under Washington state law.

This provision is significant because it ensures that Bambu franchisees in Washington have legal recourse if they believe they have been wronged in the sale of the franchise or if Bambu violates the state's franchise investment protection laws. The FDD also states that 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.

It is important for prospective franchisees to understand that while the franchise agreement may contain clauses that appear to limit their legal options, the Washington Rider specifically overrides those clauses to the extent they conflict with the Franchise Investment Protection Act. This rider ensures that franchisees are not forced to waive their rights under the Act, especially in cases of fraud or misrepresentation during the franchise sales process. This protection is a critical safeguard for franchisees, ensuring they have a means of addressing grievances and seeking justice within the bounds of Washington law.