In Washington, can court decisions supersede the Bombs Away franchise agreement regarding termination and renewal?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
The state of Washington has a statute, RCW 19.100.180 which 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 involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator.
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 states that court decisions in Washington may supersede the franchise agreement between Bombs Away and the franchisee. This includes areas related to the termination and renewal of the franchise.
This means that certain provisions within the Bombs Away franchise agreement may not be enforceable in Washington if they conflict with state law or court rulings. Specifically, the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, takes precedence in the event of any conflict of laws. Additionally, any release or waiver of rights executed by a franchisee cannot include rights under the Washington Franchise Investment Protection Act, unless it is part of a negotiated settlement with independent counsel after the agreement is already in effect.
For a prospective Bombs Away franchisee in Washington, this addendum provides additional protection under state law. It ensures that franchisees are not bound by franchise agreement terms that are inconsistent with Washington's franchise laws and that their rights to termination and renewal are safeguarded by state statutes and court decisions. Franchisees should seek legal counsel to fully understand their rights and obligations under Washington law, as it relates to their franchise agreement.