What happens if a court finds a term in the Beard Papas Franchise Agreement unreasonable?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
WASHINGTON STATE FRANCHISE AGREEMENT AMENDMENT
Amendments to the Beard Papa's Franchise Agreement
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, 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. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder 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, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, specifically the Washington FDD Amendment, court decisions may supersede the franchise agreement in areas including termination and renewal of the franchise. This means that if a court finds a specific term in the Beard Papas Franchise Agreement to be unreasonable or in conflict with Washington law, the court's decision will take precedence over the terms outlined in the franchise agreement. This could impact a franchisee's rights and obligations, particularly concerning termination or renewal.
This amendment also specifies that a release or waiver of rights executed by a franchisee may 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. Furthermore, provisions that unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable. This protects the franchisee's rights under Washington law, ensuring they are not unknowingly waiving important legal protections.
For a prospective Beard Papas franchisee in Washington, this amendment provides an added layer of protection. It ensures that the franchise agreement is subject to the scrutiny of Washington state law and court decisions, preventing the enforcement of unreasonable or unlawful terms. Franchisees should be aware of these protections and consult with legal counsel to understand their rights under the Washington Franchise Investment Protection Act.