Under what conditions can a Bonchon franchisee's release or waiver of rights include rights under the Washington Franchise Investment Protection Act?

According to Bonchon's 2025 Franchise Disclosure Document, a franchisee's release or waiver of rights can include rights under the Washington Franchise Investment Protection Act only under specific conditions. Such a release is permissible if it is executed as part of a negotiated settlement after the franchise agreement has taken effect. Additionally, both Bonchon and the franchisee must be represented by independent legal counsel during these negotiations.

This provision ensures that franchisees are not pressured into unknowingly relinquishing their rights under the Washington Franchise Investment Protection Act at the outset of the agreement or without proper legal advice. The requirement for a negotiated settlement implies that there is a dispute or issue that needs resolution, and the waiver is part of the resolution process.

The stipulation that both parties have independent counsel is crucial. It guarantees that the franchisee has someone advocating for their interests and advising them on the implications of waiving their rights. This helps to level the playing field and prevent Bonchon from taking advantage of a franchisee who may not fully understand the legal ramifications. Without these conditions, any release or waiver of rights under the Washington Franchise Investment Protection Act would be invalid.