How might RCW 19.100.180 affect the Bumper Man franchise agreement in Washington?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
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- Franchisee Bill of Rights. RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise. There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor. Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
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- Site of Arbitration, Mediation, and/or Litigation. 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.
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- General Release. A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2). In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
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- Statute of Limitations and Waiver of Jury Trial. Provisions contained in the franchise agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
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- Transfer Fees. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
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- Termination by Franchisee. The franchisee may terminate the franchise agreement under any grounds permitted under state law.
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- Certain Buy-Back Provisions.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, RCW 19.100.180, the Washington Franchise Investment Protection Act, has several potential impacts on the franchise agreement for franchisees operating in Washington. The FDD states that RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning the franchisee's relationship with Bumper Man, particularly in areas of termination and renewal. This means that certain terms in the franchise agreement that conflict with the statute may not be enforceable.
Specifically, the FDD highlights several provisions that are unlawful under RCW 19.100.180. For instance, any provision allowing Bumper Man to repurchase the franchisee's business during the term without the franchisee's consent is unlawful unless the termination is for good cause. Similarly, it is unlawful for Bumper Man to require a franchisee to purchase or rent any product or service for more than a fair and reasonable price. Provisions stating that Bumper Man may exercise its discretion based on reasonable business judgment may also be limited or superseded by the requirement that both parties deal with each other in good faith, as mandated by RCW 19.100.180(1).
Furthermore, the FDD notes that provisions in the franchise agreement that require the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act are void, unless the waiver is part of a negotiated settlement with independent counsel after the agreement is in effect, in accordance with RCW 19.100.220(2). Provisions that unreasonably restrict the statute of limitations for claims under the Act or limit rights or remedies, such as the right to a jury trial, may also be unenforceable. These stipulations collectively ensure that franchisees in Washington are afforded certain protections under state law that cannot be overridden by the standard franchise agreement.
Additionally, the FDD addresses noncompetition covenants, stating that under RCW 49.62.020, such covenants are void and unenforceable against an employee of a franchisee unless their annualized earnings exceed $100,000 (adjusted annually for inflation). For independent contractors of a franchisee, under RCW 49.62.030, this threshold is $250,000 per year (also adjusted for inflation). The FDD also states that Bumper Man is prohibited from restricting a franchisee from soliciting or hiring any employee of another Bumper Man franchisee or any employee of Bumper Man itself, as per RCW 49.62.060. These regulations provide significant protections for employees and independent contractors working within the Bumper Man franchise system in Washington.