In Washington, what conditions must be met for a release or waiver of rights executed by a Bonchon franchisee to include 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 release or waiver of rights executed by a Bonchon franchisee in Washington will only include rights under the Washington Franchise Investment Protection Act if specific conditions are met.
Specifically, such a release or waiver is valid only when it is executed as part of a negotiated settlement that occurs after the franchise agreement is already in effect. This means the franchisee must already be operating under the Bonchon franchise agreement.
Furthermore, for the release or waiver to be valid, both Bonchon and the franchisee must be represented by independent legal counsel during the negotiation and execution of the settlement. This ensures that the franchisee has adequate legal advice and is not pressured into relinquishing their rights unknowingly. Provisions that unreasonably restrict the statute of limitations or rights to a jury trial may not be enforceable.