factual

Does the Buns On Fire addendum to the Disclosure Document independently meet the jurisdictional requirements of the Washington Franchise Investment Protection Act?

Buns_On_Fire Franchise · 2025 FDD

Answer from 2025 FDD Document

ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF WASHINGTON

In recognition of the requirements of the Washington Franchise Investment Protection Act, Wash. Rev. Code §§ 19.100.180, the Franchise Disclosure Document for Buns on Fire, in connection with the offer and sale of franchises for use in the State of Washington shall be amended to include the following:

  1. Item 17, "Renewal, Termination, Transfer and Dispute Resolution," shall be amended by the addition of the following paragraphs at the conclusion of the Item:

The state of Washington has a statute, RCW 19.100.180, which may supersede the license 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 license agreement in your relationship with the franchisor including the areas of termination and renewal of your license.

In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator.

In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.

A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act 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, rights or remedies under the Act such as a right to a jury trial may not be enforceable.

Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.

Source: Item 23 — RECEIPTS (FDD pages 49–200)

What This Means (2025 FDD)

According to the 2025 Buns On Fire Franchise Disclosure Document, the addendum for the state of Washington addresses the Washington Franchise Investment Protection Act. Specifically, the Buns On Fire FDD states that Item 17, concerning "Renewal, Termination, Transfer and Dispute Resolution," is amended for Washington franchisees. This amendment includes information about how Washington state law, RCW 19.100.180, and court decisions may supersede the franchise agreement, especially regarding termination and renewal.

For Buns On Fire franchisees in Washington, any arbitration must occur within the state or a mutually agreed-upon location, unless the arbitrator determines otherwise. In case of conflicting laws, the Washington Franchise Investment Protection Act (Chapter 19.100 RCW) takes precedence. Furthermore, franchisees' rights under this Act cannot be waived except through a negotiated settlement with independent counsel after the franchise agreement is in effect.

Certain provisions that unreasonably restrict the statute of limitations for claims, or limit rights and remedies under the Act, such as the right to a jury trial, may not be enforceable. Transfer fees are only collectable to the extent that they reflect Buns On Fire's reasonable costs in facilitating the transfer. The FDD does not explicitly state that the addendum independently meets jurisdictional requirements without reference to the document itself, but it does outline key protections and legal considerations for Washington franchisees.

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.