What restrictions apply to release or waiver of rights executed by a Belocal franchisee in Washington?
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.
- e. Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
- f.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, there are specific restrictions on the release or waiver of rights executed by a franchisee in Washington. A Belocal franchisee's release or waiver of rights cannot include rights under the Washington Franchise Investment Protection Act (WFIPA) or any rule or order under it. However, this restriction does not apply if the release is executed as part of a negotiated settlement after the franchise agreement is already in effect, and both parties are represented by independent legal counsel.
Additionally, provisions that unreasonably restrict or limit the statute of limitations for claims under the WFIPA, or that limit rights or remedies under the Act, such as the right to a jury trial, may not be enforceable in Washington. This means that Belocal cannot enforce terms in the franchise agreement that would prevent a franchisee from pursuing their rights under the WFIPA within the legally defined time frame or deny them a jury trial if they are entitled to one under the Act.
Furthermore, the FDD states that any provisions within the franchise agreement or related documents that conflict with these limitations are considered void and unenforceable in Washington. This ensures that Belocal franchisees in Washington retain their rights and protections under the WFIPA, regardless of what the standard franchise agreement might otherwise stipulate. This protection is designed to ensure that franchisees are not unknowingly or unfairly deprived of their legal rights under Washington state law.