What is the relevance of RCW 19.100.180(1) to the Big Air Trampoline Park franchise agreement?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisor's Business Judgement. Provisions in the franchise agreement or related agreements stating that the franchisor may exercise its discretion on the basis of its reasonable business judgement may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 FDD, RCW 19.100.180(1) is relevant to the Big Air Trampoline Park franchise agreement because it may limit or supersede provisions that allow the franchisor to exercise discretion based on reasonable business judgment. This Washington state law requires both parties, the franchisor and the franchisee, to deal with each other in good faith.
For a prospective Big Air Trampoline Park franchisee in Washington, this means that even if the franchise agreement gives the franchisor leeway in making certain decisions, those decisions must be made in good faith. The franchisor cannot use its business judgment to unfairly disadvantage the franchisee. This provides a layer of protection for the franchisee, ensuring that the franchisor acts ethically and honestly.
This addendum serves to modify the franchise agreement to comply with Washington law, highlighting the importance of understanding state-specific regulations when entering into a franchise agreement. Franchisees should be aware of these protections and consult with legal counsel to fully understand their rights under Washington's Franchise Investment Protection Act.