factual

What is the consequence of a provision in the Black Bear Diner franchise agreement that prohibits a franchisee from communicating with regulators in Washington state?

Black_Bear_Diner Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Prohibitions on Communicating with Regulators. Any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful underRCW19.100.180(2)(h).

Source: Item 23 — RECEIPT (FDD pages 56–243)

What This Means (2025 FDD)

According to the 2025 Black Bear Diner Franchise Disclosure Document, any provision within the franchise agreement that prevents a franchisee from communicating with or complaining to regulators is inconsistent with the FDD's express instructions. Such a provision is also unlawful under Washington state law RCW 19.100.180(2)(h). This means that Black Bear Diner franchisees in Washington have the right to communicate with regulatory bodies without fear of reprisal from the franchisor, and any attempt to restrict this right is legally void.

This protection ensures that franchisees can report concerns or violations to the appropriate authorities, promoting transparency and accountability within the franchise system. It safeguards franchisees who might otherwise be hesitant to raise issues due to fear of franchisor retaliation. The FDD emphasizes this point to ensure full compliance with Washington state law, highlighting the importance of open communication between franchisees and regulators.

For a prospective Black Bear Diner franchisee in Washington, this information provides assurance that they can freely engage with regulatory agencies regarding their franchise operations. This clause protects their right to report any potential issues or concerns without contractual barriers. It also suggests that Black Bear Diner is aware of and complies with Washington state franchise laws, which is a positive indicator for franchisees in that state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.