Can RCW 19.100.180 supersede the Belocal franchise agreement, and in what areas?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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, for franchisees in Washington state, RCW 19.100.180, which is part of the Washington Franchise Investment Protection Act, may indeed supersede the franchise agreement. Specifically, this statute can take precedence in matters concerning the termination and renewal of the Belocal franchise. This means that certain terms in the standard Belocal franchise agreement that conflict with the protections offered by RCW 19.100.180 may not be enforceable in Washington.
This provision is significant for prospective Belocal franchisees in Washington because it provides an added layer of legal protection. Franchise agreements are often drafted to favor the franchisor, but this clause ensures that Washington state law, particularly regarding termination and renewal, will take precedence if there's a conflict. This could impact a franchisee's ability to renew their franchise agreement or the conditions under which Belocal can terminate the agreement.
Furthermore, the FDD states that court decisions may also supersede the franchise agreement in areas of termination and renewal. Additionally, any arbitration or mediation involving a Belocal franchise purchased in Washington must occur in Washington state unless otherwise agreed upon. Franchisees can also bring legal action in Washington if it arises from the sale of the franchise or a violation of the Washington Franchise Investment Protection Act.
It is important for potential Belocal franchisees in Washington to fully understand their rights under the Washington Franchise Investment Protection Act and how it interacts with the franchise agreement. Consulting with an attorney experienced in franchise law is advisable to ensure a complete understanding of these protections.