factual

What is the significance of the Washington Franchise Investment Protection Act for Bumper Man franchisees?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

y 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.

    1. 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.
    1. 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).
    1. 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.
    1. 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.
    1. Termination by Franchisee. The franchisee may terminate the franchise agreement under any grounds permitted under state law.
    1. Certain Buy-Back Provisions. Provisions in franchise agreements or related agreements that permit the franchisor to repurchase the franchisee's business for any reason during the term of the franchise agreement without the franchisee's consent are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause.
    1. Fair and Reasonable Pricing.

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2025 FDD)

According to the 2025 Bumper Man Franchise Disclosure Document, the Washington Franchise Investment Protection Act (WFIPA) provides several protections and rights to franchisees in Washington.

First, in any arbitration or mediation involving a Bumper Man franchise purchased in Washington, the site will be in Washington, or a place mutually agreed upon, or as determined by the arbitrator or mediator. Furthermore, if litigation is not precluded by the franchise agreement, a franchisee can bring an action related to the sale of franchises or a violation of the WFIPA in Washington.

Second, any release or waiver of rights that requires a Bumper Man franchisee to waive compliance with any provision under the WFIPA is void unless it's part of a negotiated settlement after the franchise agreement is in effect and both parties have independent counsel. This also applies to releases or waivers connected to franchise renewals or transfers, with exceptions as provided in RCW 19.100.220(2). Provisions that unreasonably restrict the statute of limitations for claims under the WFIPA, or rights such as a jury trial, may not be enforceable.

Finally, transfer fees are collectable only to the extent that they reflect Bumper Man's reasonable estimated or actual costs in effecting a transfer, and the franchisee may terminate the franchise agreement under any grounds permitted under state law. Additionally, any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is unlawful under RCW 19.100.180(2)(h).

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.