Under what circumstances related to settlements and legal representation can a Bojangles franchisee execute a release or waiver of rights under the Washington Franchise Investment Protection Act?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee in Washington can only execute a release or waiver of rights under the Washington Franchise Investment Protection Act under specific conditions. Such a release is permissible only when it is part of a negotiated settlement reached after the franchise agreement is already in effect. Furthermore, both Bojangles and the franchisee must be represented by independent legal counsel during these negotiations.
This provision aims to protect franchisees from unknowingly or unfairly relinquishing their rights under the Washington Franchise Investment Protection Act. By requiring a negotiated settlement and independent legal representation, the law ensures that franchisees are fully aware of their rights and the implications of any release or waiver they might sign. This helps to level the playing field and prevent franchisors from using their potentially stronger bargaining position to pressure franchisees into giving up important legal protections.
The FDD also clarifies that certain provisions that unreasonably restrict or limit the statute of limitations for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable. This reinforces the protective nature of the Washington Franchise Investment Protection Act and highlights the importance of franchisees understanding their rights and seeking legal counsel when necessary.