Under what condition does the release in Section 5 of the Belocal agreement not apply?

According to Belocal's 2025 Franchise Disclosure Document, the release in Section 5 of the agreement does not apply to claims arising under the Washington Franchise Investment Protection Act, specifically RCW 19.100, and its associated rules. This exception is explicitly included for transfers involving Washington franchisees.

This means that while the standard release typically covers a broad range of claims and damages, franchisees in Washington retain their rights to pursue claims related to violations of the Washington Franchise Investment Protection Act, regardless of the general release. This protection is in place due to specific state laws designed to safeguard franchisees' interests.

For a prospective Belocal franchisee in Washington, this is a beneficial provision. It ensures that they do not waive their rights to legal recourse under the state's franchise investment laws, even when signing a general release as part of a transfer agreement. This offers an additional layer of protection against potential franchisor misconduct related to franchise investments within Washington.