What is the geographic limit for the application of the Washington Franchise Investment Protection Act in the Bft franchise agreement?
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
unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
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, the Washington Franchise Investment Protection Act primarily applies to franchise agreements within the state of Washington. Specifically, several clauses within the franchise agreement that might conflict with the Act are deemed void and unenforceable in Washington. This includes restrictions on soliciting or hiring employees of other Bft franchisees or the franchisor, as well as certain non-competition covenants. The FDD includes a rider specifically for use in Washington, indicating that the Act's provisions are integrated into franchise agreements offered or operating in that state.
For a Bft franchisee, this means that the protections and regulations provided by the Washington Franchise Investment Protection Act are applicable if the franchise is located in Washington. The franchise agreement acknowledges that the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will take precedence in the event of any conflict of laws. This ensures that franchisees operating in Washington are afforded the rights and remedies available under Washington law, regardless of what the standard franchise agreement might state.
Furthermore, any arbitration or mediation involving a Bft franchise purchased in Washington must occur within the state, unless otherwise agreed upon. Franchisees also have the right to bring legal action in Washington if it relates to the sale of the franchise or a violation of the Washington Franchise Investment Protection Act. These stipulations reinforce that the Act's provisions are designed to protect franchisees operating within Washington, providing a legal framework specific to that state.