Is the Bang Cookies Franchise Disclosure Document effective in Washington?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
side this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
- B. Any general release as a condition of renewal, termination or transfer will be void with respect to claims under the Rhode Island Franchise Investment Act.
Virginia FDD Amendment
Amendments to the Bang Cookies Franchise Disclosure Document
Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17(h) is supplemented by the addition of the following:
Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in Bang Cookies Franchise Agreement do not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
Washington FDD Amendment
Amendments to the Bang Cookies Franchise Disclosure Document
In recognition of the Washington State Franchise Investment Protection Act, Chapter 19.100 RCW, the following amendments are made to the Franchise Disclosure Document:
- In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the State of Washington, or in a place mutually agreed upon at the time of the arbitration or as determined by the arbitrator.
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
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- A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
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Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the document is effective in Washington. The FDD includes a specific "Washington FDD Amendment" in recognition of the Washington State Franchise Investment Protection Act, Chapter 19.100 RCW. This indicates that Bang Cookies has taken the necessary steps to comply with Washington's franchise laws.
The amendment outlines several modifications to the standard franchise agreement to align with Washington law. These modifications cover key areas such as arbitration location, conflict of laws, franchisee waivers, transfer fees, and non-competition agreements. For instance, the amendment specifies that arbitration involving a franchise purchased in Washington must occur within the state unless otherwise agreed upon. It also addresses the enforceability of non-competition agreements under Washington law, noting that such agreements are unenforceable if the employee's annual earnings do not exceed $100,000 and that there is a presumption that any non-compete covenant lasting longer than 18 months is unreasonable.
These amendments are important for prospective Bang Cookies franchisees in Washington as they clarify how certain provisions of the franchise agreement are interpreted and enforced within the state. They also highlight specific protections afforded to franchisees under Washington law, such as the right to have disputes resolved within the state and limitations on non-competition agreements. Franchisees should carefully review these amendments to understand their rights and obligations under the franchise agreement in Washington.
Furthermore, the Washington State Franchise Agreement Amendment reinforces these points within the franchise agreement itself. This amendment ensures that the franchise agreement aligns with Washington state law, providing additional clarity and protection for franchisees operating in Washington.