Under what conditions can a Belocal franchisee bring an action in Washington related to the sale of franchises?

According to Belocal's 2025 Franchise Disclosure Document, a franchisee in Washington may bring an action or proceeding against Belocal if litigation is not precluded by the franchise agreement. This action must arise out of or be connected with either the sale of franchises or a violation of the Washington Franchise Investment Protection Act. This provision ensures that Washington franchisees have a legal avenue within their own state to address grievances related to franchise sales or violations of the state's franchise laws.

This right is further protected by stipulations within the FDD that address potential conflicts of law. Specifically, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will take precedence in the event of any conflict. Additionally, 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 layers of protection 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 unless it is part of a negotiated settlement reached after the franchise agreement is already in effect and both parties are represented by independent counsel. Provisions that unreasonably restrict the statute of limitations for claims or limit rights and remedies under the Act, such as the right to a jury trial, may not be enforceable. This ensures that franchisees cannot unknowingly or unfairly relinquish their legal protections under Washington law.