Under what conditions is a release or waiver of rights in the Body20 franchise agreement valid in Washington?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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 or related documents is generally void if it requires a franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act. However, there are specific conditions under which such a release or waiver can be considered valid.
Specifically, a release or waiver is valid only when it is executed as part of a negotiated settlement after the franchise agreement is already in effect. Additionally, for the release or waiver to be valid, both parties (Body20 and the franchisee) must be represented by independent legal counsel during the negotiation and execution of the settlement. This ensures that the franchisee's rights are protected and that they are entering into the agreement with informed consent.
Furthermore, 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: it must be part of a negotiated settlement, occur after the agreement is in effect, and involve both parties being represented by independent counsel. This provision aims to prevent Body20 from using the renewal or transfer process to pressure franchisees into waiving their rights under the Washington Franchise Investment Protection Act.