What does this provision supersede regarding the Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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, rig
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to the 2024 Bang Cookies Franchise Disclosure Document, the franchise agreement's non-competition provisions may be superseded by Chapter 49.62 RCW in Washington State. This means that certain aspects of the non-compete agreement outlined in the Bang Cookies franchise agreement may not be enforceable in Washington if they conflict with state law.
Specifically, Washington law stipulates several conditions regarding non-competition agreements. First, an employee non-compete covenant is unenforceable unless the employee's annual earnings exceed $100,000. Second, there is a presumption that any non-compete covenant lasting longer than 18 months is unreasonable and unenforceable. Third, Bang Cookies cannot restrict a franchisee from soliciting or hiring any employee of the franchisor or another franchisee of the same franchisor. Finally, any contractual provision requiring an employee to resolve a non-competition covenant outside of Washington State is void and unenforceable.
For a prospective Bang Cookies franchisee in Washington, this amendment provides important protections. It ensures that the franchisee's rights under Washington law are not undermined by the franchise agreement's standard non-competition clauses. Franchisees should carefully review the non-competition provisions in the franchise agreement and understand how they are modified by Washington law to ensure compliance and protect their interests.