Are there any exceptions to the rule against waiving compliance with the Washington Franchise Investment Protection Act for a Best Brains franchise?
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 the 2025 Best Brains Franchise Disclosure Document, a general release or waiver of rights that attempts to bind a franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act is typically void. However, there is an exception to this rule.
The exception occurs when the release is executed pursuant to a negotiated settlement after the franchise agreement is already in effect. In this situation, both parties must be represented by independent counsel, and the settlement must be in accordance with RCW 19.100.220(2). This means that after the franchise agreement has been signed and is active, if a dispute arises and the parties reach a settlement, a waiver of rights under the Washington Franchise Investment Protection Act may be valid, provided specific conditions are met.
Additionally, any release or waiver executed in connection with a renewal or transfer of a Best Brains franchise is also void unless it complies with the provisions outlined in RCW 19.100.220(2). This ensures that franchisees are protected from unknowingly or unfairly waiving their rights under the Washington Franchise Investment Protection Act, except under very specific and regulated circumstances.