In the event of a conflict of laws, which law prevails for a Belocal franchise purchased in Washington?
Belocal 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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if there is a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will take precedence for a franchise purchased in Washington. This is designed to protect franchisees in Washington by ensuring that the state's franchise laws are upheld.
This means that any clause in the franchise agreement that contradicts the Washington Franchise Investment Protection Act will be superseded by the Act. This protection extends to areas such as termination and renewal of the franchise, where RCW 19.100.180 may also override the franchise agreement. Additionally, court decisions may also supersede the franchise agreement in matters of termination and renewal.
Furthermore, any arbitration or mediation involving a Belocal franchise purchased in Washington must occur within the state, or at a mutually agreed upon location, or as determined by the arbitrator or mediator. Franchisees in Washington also have the right to bring legal action related to the sale of franchises or violations of the Washington Franchise Investment Protection Act within the state, provided the franchise agreement does not preclude litigation.