What is the effect of RCW 19.100.180(1) on the Best Brains franchise agreement?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Provisions in the franchise agreement or related agreements stating that the franchisor may exercise its discretion on the basis of its reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, RCW 19.100.180(1) may limit or supersede provisions in the franchise agreement or related agreements that allow Best Brains to exercise discretion based on its reasonable business judgment. This Washington statute mandates that both parties, Best Brains and the franchisee, must deal with each other in good faith.
For a prospective Best Brains franchisee in Washington, this means that even if the franchise agreement grants Best Brains certain discretionary powers based on business judgment, those powers are not absolute. The franchisor must exercise its judgment in good faith, adhering to the standards set by Washington law. This provision aims to protect franchisees from potentially unfair or arbitrary decisions made by the franchisor.
This statute ensures that Best Brains cannot use its business judgment to unfairly disadvantage a franchisee. Franchisees should be aware of this protection and consult with legal counsel to understand their rights under RCW 19.100.180(1) and how it applies to specific clauses within the Best Brains franchise agreement.