Must a negotiated settlement be in effect before a release or waiver is executed for a Body20 franchise in Washington?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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- General Release.
A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement in Washington is only valid under specific conditions. To be enforceable, the release or waiver must be executed as part of a negotiated settlement that occurs after the franchise agreement is already in effect. Additionally, both parties, Body20 and the franchisee, must be represented by independent legal counsel during the negotiation and execution of the settlement. This requirement is in accordance with Washington state law (RCW 19.100.220(2)).
This provision aims to protect Body20 franchisees in Washington from unknowingly or unfairly waiving their rights under the Washington Franchise Investment Protection Act. By requiring a negotiated settlement with independent counsel, the law ensures that franchisees are fully aware of their rights and the implications of any release or waiver they sign. This helps to level the playing field and prevent franchisors from using their potentially stronger bargaining position to extract unfavorable waivers from franchisees.
Furthermore, the FDD specifies that any release or waiver executed in connection with the renewal or transfer of a Body20 franchise is also void unless it meets the same conditions outlined in RCW 19.100.220(2). This means that even when a franchisee is renewing their agreement or transferring their franchise to someone else, they cannot be compelled to waive their rights unless a negotiated settlement with independent counsel is in place. This provides continuous protection for franchisees throughout the lifecycle of their relationship with Body20.
In practical terms, a prospective Body20 franchisee in Washington should understand that any attempt by Body20 to obtain a release or waiver of rights outside of a formal, negotiated settlement with independent counsel is likely unenforceable. This knowledge empowers franchisees to assert their rights and seek legal advice when faced with such situations, ensuring they are not disadvantaged by potentially overreaching provisions in the franchise agreement.