Under what conditions can a release or waiver of rights executed by a Bonchon franchisee 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 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.
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 a Bonchon franchisee in Washington will generally not include rights under the Washington Franchise Investment Protection Act. However, there are specific conditions under which such a waiver can include these rights.
The waiver can include rights under the Washington Franchise Investment Protection Act if it is executed pursuant to a negotiated settlement. This settlement must occur after the Franchise Agreement is already in effect, indicating that the franchisee has already entered into the business relationship with Bonchon.
Furthermore, for the waiver to be valid and include rights under the Act, both parties, Bonchon and the franchisee, must be represented by independent legal counsel during the negotiation and execution of the settlement. This ensures that the franchisee is fully aware of their rights and the implications of the waiver, and that they have received proper legal advice before agreeing to it. This requirement aims to protect franchisees from unknowingly relinquishing important legal protections under the Washington Franchise Investment Protection Act.