How might RCW 19.100.180 affect the franchise agreement for a Baymont Inn Suites franchise in Washington?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
or related agreements that permit the franchisor to repurchase the franchisee's business for any reason during the term of the
franchise agreement without the franchisee's consent are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause.
Fair and Reasonable Pricing. Any provision in the franchise agreement or related agreements that requires the franchisee to purchase or rent any product or service for more than a fair and reasonable price is unlawful under RCW 19.100.180(2)(d).
Waiver of Exemplary & Punitive Damages. RCW 19.100.190 permits franchisees to seek treble damages under certain circumstances. Accordingly, provisions contained in the franchise agreement or elsewhere requiring franchisees to waive exemplary, punitive, or similar damages are void, except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to the 2025 FDD, RCW 19.100.180, the Washington Franchise Investment Protection Act, can significantly impact a Baymont Inn Suites franchise agreement in Washington state. Several provisions within the franchise agreement may be superseded by this statute, particularly concerning the franchisee's relationship with Baymont Inn Suites regarding termination and renewal. This means that certain terms in the franchise agreement that address these areas might not be fully enforceable if they conflict with the protections offered under Washington law.
Specifically, any requirement for a Baymont Inn Suites franchisee to purchase or rent products or services at more than a fair and reasonable price is unlawful under RCW 19.100.180(2)(d). Furthermore, provisions allowing Baymont Inn Suites to repurchase the franchisee's business during the term without consent are unlawful unless the termination is for good cause, according to RCW 19.100.180(2)(j). The law also mandates that Baymont Inn Suites and its franchisees deal with each other in good faith, which may limit or supersede provisions allowing the franchisor to exercise discretion based solely on their reasonable business judgment.
In practical terms, a prospective Baymont Inn Suites franchisee in Washington should be aware that the state's franchise law offers certain protections that override the standard franchise agreement. This includes the right to fair pricing, restrictions on franchisor buy-back provisions, and a requirement for good faith dealings. Franchisees should consult with legal counsel to fully understand their rights under RCW 19.100.180 and how it affects the enforceability of specific clauses within their Baymont Inn Suites franchise agreement.