What specific law is referenced as an exception to the release in paragraph 5(b) of the Belocal Transfer Agreement in Washington?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
[INCLUDE THE FOLLOWING SENTENCE FOR TRANSFERS IN WASHINGTON ONLY: This release in paragraph 5(b) does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.]
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, for transfers occurring in Washington State, the release in paragraph 5(b) of the transfer agreement does not apply to claims arising under the Washington Franchise Investment Protection Act, specifically RCW 19.100, and its associated rules.
This means that while a Belocal franchisee in Washington typically releases the franchisor from various claims when transferring their franchise, this release does not extend to claims related to violations of the Washington Franchise Investment Protection Act. This act is designed to protect franchisees from unfair practices by franchisors.
For a prospective Belocal franchisee in Washington, this is a beneficial provision. It ensures that they retain their rights to pursue legal action against Belocal if they believe the franchisor has violated the Washington Franchise Investment Protection Act, even after signing a transfer agreement. This protection is specific to Washington State and reflects the state's commitment to franchisee rights.