Does the Washington Addendum to the Brueggers Bagels License Agreement address the issue of franchisee's rights?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Washington Franchise Investment Protection Act, Wash. Rev. Code §§ 19.100.010 through 19.100.940, the parties to the attached Bruegger's Franchise Corporation Franchise Agreement agree as follows:
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to the 2025 FDD, the Washington Addendum to the Brueggers Bagels Franchise Agreement does address franchisee's rights, primarily in relation to the Washington Franchise Investment Protection Act. The addendum states that the provisions of this act will prevail in the event of any conflict of laws. Furthermore, RCW 19.100.180, a section of the Act, may supersede the franchise agreement, especially concerning termination and renewal. Court decisions may also override the franchise agreement in these areas. This ensures that franchisees in Washington receive the protections afforded to them under state law, even if the franchise agreement contains conflicting terms.
In terms of dispute resolution, the addendum specifies that any arbitration or mediation involving a Brueggers Bagels franchise purchased in Washington must occur within the state, unless otherwise agreed upon. Franchisees also have the right to bring legal action in Washington for issues related to the sale of franchises or violations of the Washington Franchise Investment Protection Act, provided litigation isn't precluded by the franchise agreement. This offers a more accessible legal avenue for franchisees who may otherwise be bound by out-of-state jurisdiction clauses in the standard franchise agreement.
The addendum also protects franchisees from unknowingly waiving their rights under the Washington Franchise Investment Protection Act. Any release or waiver of rights must be executed pursuant to a negotiated settlement after the agreement is in effect, and only when the franchisee is represented by independent counsel. Certain provisions that unreasonably restrict the statute of limitations or rights to a jury trial may not be enforceable. Additionally, transfer fees must reflect the franchisor's reasonable costs. These stipulations prevent Brueggers Bagels from using the franchise agreement to circumvent the protections provided by Washington law, ensuring a fairer balance of power between the franchisor and franchisee.