For a Bombs Away franchise in Washington, what is the impact on rights or remedies under the Washington Franchise Investment Protection Act, such as the right to a jury trial, if unreasonably restricted or limited?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 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 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the Washington Addendum clarifies the relationship between the franchise agreement and the Washington Franchise Investment Protection Act. Specifically, provisions within the franchise agreement that unreasonably restrict or limit rights or remedies available under the Act may not be enforceable. This includes rights such as the right to a jury trial.
For a prospective Bombs Away franchisee in Washington, this means that any clause in the franchise agreement that attempts to curtail their rights under the Washington Franchise Investment Protection Act—like limiting the time to file a claim or waiving the right to a jury trial—may be deemed unenforceable by a court. This protection ensures that franchisees are not unfairly disadvantaged by the franchise agreement and can seek legal recourse if Bombs Away violates the Act.
This provision is significant because it prevents Bombs Away from using the franchise agreement to circumvent the protections afforded to franchisees under Washington law. However, a franchisee can waive their rights under the Washington Franchise Investment Protection Act if the waiver is part of a negotiated settlement, agreed to after the franchise agreement is in effect, and the franchisee is represented by independent legal counsel. This allows for flexibility in resolving disputes while still safeguarding the franchisee's fundamental rights under the Act.