In the event of a conflict of laws, which law prevails for Bft franchisees in Washington?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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. Provisions such as those which
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail for Bft franchisees in Washington. This means that if any part of the franchise agreement contradicts Washington state law regarding franchise investments, the state law will take precedence.
This protection is significant for prospective Bft franchisees in Washington because it ensures that their rights under state law are upheld, even if the franchise agreement attempts to limit or waive those rights. The FDD also states that RCW 19.100.180 may supersede the franchise agreement in areas of termination and renewal, and court decisions may also supersede the franchise agreement in those areas. This provides an additional layer of security, ensuring that franchisees are not bound by contractual terms that violate state statutes or judicial precedents.
Furthermore, the FDD clarifies that any release or waiver of rights executed by a franchisee cannot include rights under the Washington Franchise Investment Protection Act unless it is part of a negotiated settlement with independent counsel after the agreement is already in effect. This prevents Bft from forcing franchisees to unknowingly give up their legal protections. Provisions that unreasonably restrict the statute of limitations for claims or rights to a jury trial are also unenforceable.
In summary, these provisions in the Bft franchise agreement are designed to protect franchisees in Washington by ensuring that state laws and regulations take precedence over conflicting terms in the franchise agreement. Prospective franchisees should carefully review these protections and consult with legal counsel to fully understand their rights under Washington law.