Which section of the Bft Multi-Unit Agreement regarding cross default will not apply to the extent it is inconsistent with RCW 19.100.180?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Disclosure Document does not waive any liability we may have under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 FDD, the Bft Franchise Disclosure Document does not waive any liability the franchisor may have under the Washington Investment Protection Act, RCW 19.100, and the rules adopted thereunder. This means that any section of the Multi-Unit Agreement, including those related to cross-default, will not be enforced if it conflicts with the Washington Investment Protection Act (RCW 19.100).
In practical terms, this protects Bft franchisees in Washington from certain overreaching provisions in the standard Multi-Unit Agreement. For example, if a cross-default clause (where a default in one agreement triggers a default in another) is deemed overly harsh or unfair under Washington law, it will not be enforceable. This ensures that Washington franchisees retain the protections afforded to them by state law, even if the standard agreement attempts to limit those rights.
Prospective Bft franchisees in Washington should carefully review the Multi-Unit Agreement with legal counsel to identify any clauses that might be inconsistent with RCW 19.100. It is important to understand which provisions of the agreement are fully enforceable and which are subject to the limitations imposed by Washington law. This understanding will help franchisees make informed decisions and protect their investment.