What is the effect of RCW 19.100.180 on the Bombs Away franchise agreement in Washington regarding termination?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, for franchisees in Washington state, the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, takes precedence over any conflicting terms in the franchise agreement. Specifically, RCW 19.100.180 may supersede the franchise agreement regarding termination and renewal of the franchise. This means that the legal rights and protections afforded to franchisees under Washington law cannot be overridden by the standard terms of the Bombs Away franchise agreement.
This protection extends to the location of arbitration or mediation. Any arbitration or mediation must occur in Washington state, unless both parties agree to another location or the arbitrator/mediator determines the location. Furthermore, Bombs Away franchisees in Washington have the right to bring legal action in Washington if litigation is not precluded by the franchise agreement, particularly concerning the sale of franchises or violations of the Washington Franchise Investment Protection Act.
Additionally, any release or waiver of rights signed by a Bombs Away franchisee cannot waive rights under the Washington Franchise Investment Protection Act, unless it is part of a negotiated settlement with independent legal counsel after the franchise agreement is already in effect. Provisions that unreasonably restrict the statute of limitations for claims or rights to a jury trial under the Act may not be enforceable. This ensures that franchisees retain their legal recourse and protections under Washington law, even if the franchise agreement attempts to limit those rights.
In summary, Bombs Away franchisees in Washington state benefit from the assurance that the state's franchise laws provide a baseline of protection that cannot be diminished by the franchise agreement, especially concerning termination, renewal, dispute resolution, and waiver of rights.