Can a Brueggers Bagels franchisee in Washington waive rights under the Washington Franchise Investment Protection Act?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the 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, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels FDD, a franchisee in Washington cannot waive their rights under the Washington Franchise Investment Protection Act, except under specific circumstances. A waiver is permissible only if it is part of a negotiated settlement reached after the franchise agreement is already in effect. Additionally, for such a waiver to be valid, the franchisee must be represented by independent legal counsel during the negotiation of the settlement.
This provision is designed to protect franchisees from unknowingly or unfairly relinquishing their rights under the Act. The requirement for a negotiated settlement ensures that the waiver is not a standard, pre-agreement clause where the franchisee may have less bargaining power. The presence of independent counsel further safeguards the franchisee by ensuring they receive proper legal advice before agreeing to waive any rights.
Furthermore, the FDD specifies that any provisions that unreasonably restrict or limit the statute of limitations for claims under the Act, or rights and remedies such as the right to a jury trial, may not be enforceable. This reinforces the protection afforded to franchisees under Washington law, preventing franchisors from using the franchise agreement to circumvent the protections provided by the Washington Franchise Investment Protection Act.