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For a Best Brains franchise in Washington, what conditions must be met for a general release to be considered valid?

Q: For a Best Brains franchise in Washington, what conditions must be met for a general release to be considered valid?

- 4. **General Release**. A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2). In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2). Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

1. General Release. A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with

RCW 19.100.220(2). In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)

What This Means (2025 FDD)

According to Best Brains' 2025 Franchise Disclosure Document, a general release or waiver of rights within the franchise agreement for franchisees in Washington is only valid under specific conditions. The release must be part of a negotiated settlement that occurs after the franchise agreement is already in effect. Additionally, both Best Brains and the franchisee must be represented by independent legal counsel during these negotiations. This requirement is in accordance with Washington state law, specifically RCW 19.100.220(2).

This means that any attempt by Best Brains to include a blanket waiver of rights at the initial signing of the franchise agreement is unenforceable. The franchisee retains their rights under the Washington Franchise Investment Protection Act unless they knowingly and voluntarily waive those rights later, with the advice of their own attorney, during a settlement.

Furthermore, any release or waiver connected to the renewal or transfer of a Best Brains franchise in Washington is also void unless it adheres to the same conditions outlined in RCW 19.100.220(2). This ensures that franchisees are protected even when renewing or transferring their franchise, preventing Best Brains from using these events to pressure franchisees into relinquishing their legal rights without proper representation and negotiation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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