What is the limitation on transfer fees that Big O Tires can collect in Washington?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.
The following provision applies for any ASSIGNORS, ASSIGNEES, and Guarantors of an ASSIGNOR or ASSIGNEE in Washington:
This release does not apply with respect to any claims under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, a general release does not extend to claims under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. This limitation applies to any assignors, assignees, and guarantors of an assignor or assignee in Washington.
In practical terms, this means that if a Big O Tires franchisee in Washington transfers their franchise to someone else, the standard release they sign as part of the transfer agreement does not prevent them from making claims against Big O Tires under Washington's franchise law. This protects the franchisee's rights under state law, even after they have transferred the franchise.
This provision ensures that franchisees and those involved in franchise transfers in Washington retain their rights to pursue legal claims related to franchise investments, regardless of any general releases signed during the transfer process. Prospective franchisees in Washington should be aware of this protection, as it allows them to address potential violations of the Washington Franchise Investment Protection Act even after a transfer has occurred.