Under what conditions can a Bonchon franchisee in Washington waive their rights under the Washington Franchise Investment Protection Act?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
A release or waiver of rights executed by a Franchisee will not include rights under the Washington Franchise Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the Franchise 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, and rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a Bonchon franchisee in Washington can only waive their rights under the Washington Franchise Investment Protection Act under specific conditions. The waiver must be executed pursuant to a negotiated settlement that occurs after the Franchise Agreement is already in effect. Furthermore, both Bonchon and the franchisee must be represented by independent legal counsel during these negotiations.
This provision ensures that franchisees are not pressured into waiving their rights before fully understanding the implications of the franchise agreement. By requiring a negotiated settlement and independent legal representation, the agreement aims to protect franchisees from unknowingly relinquishing important legal protections afforded by the Washington Franchise Investment Protection Act.
It is important to note that certain provisions that unreasonably restrict or limit the statute of limitations for claims under the Act, and rights or remedies under the Act such as a right to a jury trial, may not be enforceable. This further protects the franchisee from unknowingly giving up their rights under the act.