Can a Belocal franchisee waive rights under the Washington Franchise Investment Protection Act?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee's ability to waive rights under the Washington Franchise Investment Protection Act (WFIPA) is restricted. A Belocal franchisee cannot execute a release or waiver of rights under the WFIPA, except under specific conditions.
The FDD specifies that a waiver is permissible only if it is part of a negotiated settlement, executed after the franchise agreement is already in effect. Furthermore, both Belocal and the franchisee must be represented by independent legal counsel during these negotiations. This provision aims to protect franchisees from unknowingly relinquishing their rights under the WFIPA at the outset of the franchise relationship or without proper legal guidance.
Additionally, the FDD states that any provisions that unreasonably restrict or limit the statute of limitations for claims under the WFIPA, or rights or remedies such as the right to a jury trial, may not be enforceable. This ensures that franchisees retain their fundamental legal rights and protections under the Act. This protection extends to franchise transfers, where a release does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.