What is the impact of RCW 19.100.220(2) on releases or waivers for Best Brains franchises in Washington?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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, RCW 19.100.220(2) significantly restricts the enforceability of releases or waivers within franchise agreements in Washington state. Specifically, any release or waiver that requires a franchisee to waive compliance with the Washington Franchise Investment Protection Act is considered void. This protection extends to the rules and orders established under the Act, ensuring franchisees cannot inadvertently relinquish their rights.
However, there are limited exceptions. A release or waiver is permissible if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. Crucially, for such a release to be valid, both Best Brains and the franchisee must be represented by independent legal counsel. This requirement ensures that the franchisee has adequate representation and advice when making decisions that could affect their rights under the franchise agreement.
Furthermore, the FDD states that any release or waiver connected to the renewal or transfer of a Best Brains franchise is also void unless it adheres to the conditions outlined in RCW 19.100.220(2). This provision aims to prevent Best Brains from using the renewal or transfer process as an opportunity to pressure franchisees into relinquishing their rights without proper legal representation and a fair, negotiated settlement.