In the event of a conflict of laws, which law prevails for a Bombs Away franchise in Washington?
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.
A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act 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 limitation period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the Washington Addendum to the Disclosure Document and Rider to the Franchise Agreement specifies that in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will take precedence. This means that if there is a disagreement between the franchise agreement and Washington state law, the state law will be followed. This protection is specific to franchises purchased in Washington.
This clause is important for prospective Bombs Away franchisees in Washington because it ensures that the franchisee is protected by the Washington Franchise Investment Protection Act. This Act covers various aspects of the franchise relationship, including termination and renewal, and provides certain rights and remedies to franchisees. The addendum also states that a release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions that unreasonably restrict or limit the statute of limitation period for claims under the Act, rights, or remedies under the Act such as a right to a jury trial may not be enforceable.
This protection is significant because franchise agreements often contain clauses that favor the franchisor. By ensuring that Washington law prevails in case of conflict, the addendum aims to create a more balanced relationship between Bombs Away and its Washington franchisees. Prospective franchisees should carefully review the Washington Franchise Investment Protection Act to understand their rights and protections under the law. They should also consult with an attorney to ensure that their interests are adequately protected.