Under what conditions can a release or waiver of rights executed by a Bonchon Area Developer in Washington include rights under the Washington Franchise Protection Act?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
A release or waiver of rights executed by an Area Developer 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 Area Development Agreement is in effect and where the parties are represented by independent counsel.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a release or waiver of rights executed by an Area Developer in Washington will generally not include rights under the Washington Franchise Protection Act. However, there is an exception.
Specifically, such a release or waiver can include rights under the Washington Franchise Protection Act only when it is executed pursuant to a negotiated settlement. This settlement must occur after the Area Development Agreement is already in effect.
Furthermore, for the release or waiver to be valid, both Bonchon and the Area Developer must be represented by independent legal counsel during the negotiation and execution of the settlement. This ensures that the Area Developer's rights are protected and that they are making an informed decision with the advice of their own attorney.