Under what conditions can a Belocal franchisee in Washington waive rights under the Washington Franchise Investment Protection Act?
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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a franchisee in Washington can only waive their rights under the Washington Franchise Investment Protection Act under specific conditions. The waiver must be executed pursuant to a negotiated settlement, and this settlement must occur after the franchise agreement is already in effect.
Furthermore, for the waiver to be valid, both parties involved, the franchisee and Belocal, must be represented by independent legal counsel. This requirement ensures that the franchisee has received proper legal advice and understands the implications of waiving their rights under the Act.
This provision aims to protect franchisees from unknowingly or unfairly relinquishing their rights. It ensures that any waiver is the result of informed negotiation and is made with the benefit of independent legal representation, safeguarding the franchisee's interests after the franchise agreement has commenced.