What Washington law prevails in the event of a conflict of laws regarding the Budget franchise agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail if there is a conflict of laws. This means that if any part of the franchise agreement clashes with this Washington law, the state law will take precedence.
This protection extends to specific areas of the franchise relationship, particularly concerning termination and renewal. RCW 19.100.180 may supersede the franchise agreement in these areas, and court decisions could also override the agreement's terms. This ensures that Budget franchisees in Washington are afforded the protections provided by state law, even if the franchise agreement attempts to limit those rights.
Furthermore, for any arbitration or mediation involving a Budget franchise purchased in Washington, the venue must be in Washington or a location mutually agreed upon. Franchisees also retain the right to bring legal action in Washington for issues arising from the sale of the franchise or violations of the Washington Franchise Investment Protection Act, provided litigation isn't precluded by the franchise agreement. This provision ensures that Washington franchisees have access to a local legal forum and are not forced to resolve disputes in a distant or inconvenient location.
Finally, any release or waiver of rights signed by a Budget franchisee cannot include rights under the Washington Franchise Investment Protection Act unless it's part of a negotiated settlement with independent legal representation after the franchise agreement is already in effect. Provisions that unreasonably restrict the statute of limitations for claims or rights to a jury trial may not be enforceable. This safeguards franchisees from unknowingly or unintentionally giving up their legal rights under Washington law.