In Washington, what is the status of provisions in the Bombs Away franchise agreement that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act?
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 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, the Washington Addendum clarifies the enforceability of certain provisions within the franchise agreement. Specifically, provisions that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act may not be enforceable. This protection ensures that franchisees in Washington are not unduly limited in their ability to pursue legal claims under the state's franchise laws. This addendum aims to protect the franchisee's rights under Washington law, preventing overreaching restrictions that might otherwise be imposed by the franchise agreement.
This means that if a Bombs Away franchise agreement contains terms that shorten the time a franchisee has to file a claim under the Washington Franchise Investment Protection Act, those terms may be deemed unenforceable. The purpose is to ensure franchisees have adequate time to discover and address potential violations of the Act. The Washington Franchise Investment Protection Act, Chapter 19.100 RCW, takes precedence over conflicting provisions in the franchise agreement.
For a prospective Bombs Away franchisee in Washington, this addendum offers a degree of legal protection. It prevents the franchisor from enforcing clauses that might unfairly limit the franchisee's ability to seek legal recourse within the bounds of the Washington Franchise Investment Protection Act. Franchisees should consult with an attorney to fully understand their rights and the implications of this addendum in relation to the entire franchise agreement.