Does the Belocal General Release apply to claims arising under the Washington Franchise Investment Protection Act for Washington franchisees?

According to Belocal's 2025 Franchise Disclosure Document, the General Release does not apply to claims arising under the Washington Franchise Investment Protection Act for Washington franchisees. This protection is explicitly stated in the FDD, ensuring that franchisees in Washington retain their rights under the Act, RCW 19.100, and its associated rules. This means that any general release signed by a Belocal franchisee in Washington will not prevent them from pursuing claims related to violations of the Washington Franchise Investment Protection Act.

This provision is significant for prospective Belocal franchisees in Washington because it safeguards their ability to seek legal recourse under the state's franchise laws. The Washington Franchise Investment Protection Act provides certain protections to franchisees, and this clause ensures that these rights cannot be waived through a general release. This is particularly important in the context of franchise agreements, where franchisees may sometimes feel pressured to sign broad releases that could inadvertently waive important legal rights.

Furthermore, the FDD includes a Washington Addendum that reinforces these protections. It states that a release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act, except under specific circumstances such as a negotiated settlement with independent legal representation. This addendum also clarifies that provisions that unreasonably restrict the statute of limitations or rights to a jury trial may not be enforceable. This ensures that Belocal franchisees in Washington are afforded the full protection of the Washington Franchise Investment Protection Act, regardless of any general release agreements.