Are there any restrictions on limiting rights or remedies under the Washington Franchise Investment Protection Act, such as a right to a jury trial, for a Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the Washington State Franchise Investment Protection Act, Chapter 19.100 RCW, the parties to the attached Bang Cookies Franchise LLC Franchise Agreement (the "Franchise Agreement") agree as follows:
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- 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.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the Washington State Franchise Agreement Amendment addresses the Washington State Franchise Investment Protection Act. Specifically, it states that provisions that unreasonably restrict or limit rights or remedies under the Act, such as the right to a jury trial, may not be enforceable. This means that certain clauses in the standard Bang Cookies franchise agreement that might limit a franchisee's legal options could be deemed invalid under Washington law.
This amendment ensures that Bang Cookies franchisees in Washington retain the protections afforded to them by the state's Franchise Investment Protection Act. It clarifies that franchisees cannot waive their rights under this Act through standard agreement clauses, except in cases of a negotiated settlement with independent legal representation after the franchise agreement is already in effect. This is a significant protection for franchisees, as it prevents them from unknowingly or unintentionally giving up important legal rights.
Furthermore, the Bang Cookies FDD specifies that in any arbitration involving a franchise purchased in Washington, the arbitration site must be in Washington State or a location mutually agreed upon by both parties or determined by the arbitrator. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act will take precedence. This ensures that Washington franchisees are subject to Washington law and have access to a local arbitration venue, which can reduce costs and logistical challenges associated with resolving disputes.