What limitation periods are Franchisor and Franchisee bound to in any arbitration proceeding for Beard Papas?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
Based on the 2025 Beard Papas Franchise Disclosure Document excerpts, the standard franchise agreement does not specify a limitation period for arbitration proceedings. However, an amendment for Washington State franchisees indicates that provisions unreasonably restricting or limiting the statute of limitations period for claims under the Washington Franchise Investment Protection Act may not be enforceable. This suggests that while the franchise agreement itself might attempt to set a limitation period, state laws could override those terms.
For prospective Beard Papas franchisees, this means the enforceability of any limitation period for claims is subject to the laws of their specific state, particularly if those laws protect franchisee rights. In Washington, for example, the franchise agreement cannot unduly shorten the time a franchisee has to bring a claim under the state's franchise act. This ensures franchisees have adequate time to discover and pursue legal remedies for potential violations.
Therefore, it is crucial for potential franchisees to consult with legal counsel to understand the specific statutes of limitations applicable in their state and how those laws interact with the franchise agreement. Franchisees should inquire about the enforceability of any clauses within the Beard Papas franchise agreement that might limit their ability to bring claims within the statutory period provided by state law. This due diligence will help protect their rights and ensure they have sufficient time to address any disputes that may arise during the franchise term.