Under what circumstances can a Belocal franchisee bring an action in Washington state?

According to Belocal's 2025 Franchise Disclosure Document, a franchisee in Washington may bring an action or proceeding against Belocal under specific conditions. If the franchise agreement does not preclude litigation, a franchisee can initiate legal action in Washington state if the action arises from or is connected to the sale of franchises. Additionally, a franchisee can bring an action or proceeding if there is a violation of the Washington Franchise Investment Protection Act. This provision ensures that Belocal franchisees in Washington have legal recourse for issues related to franchise sales practices and compliance with state law.

This protection is further reinforced by stipulations within the franchise agreement that address potential conflicts of law. The FDD states that the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will take precedence in the event of any conflict. Furthermore, RCW 19.100.180 may supersede the franchise agreement, particularly in matters concerning the termination and renewal of the franchise. Court decisions may also override the franchise agreement in these areas, providing additional safeguards for the franchisee.

Moreover, any release or waiver of rights executed by a Belocal franchisee cannot include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder. An exception exists only when the release is part of a negotiated settlement reached after the franchise agreement is in effect and both parties are represented by independent counsel. This ensures that franchisees cannot inadvertently waive their rights under state law without proper legal representation and informed consent. These stipulations collectively provide a legal framework that protects Belocal franchisees in Washington and ensures their rights are upheld under state law.