Does the effectiveness of the addendum to the Disclosure Document for Buns On Fire depend on the Washington Franchise Investment Protection Act?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
- 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 to the Franchise Disclosure Document for the state of Washington is explicitly tied to the Washington Franchise Investment Protection Act. The addendum itself states that it is in recognition of the requirements of the Washington Franchise Investment Protection Act, Wash. Rev. Code §§ 19.100.180. This means that the provisions within the addendum are designed to ensure compliance with Washington's specific franchise laws.
Specifically, the addendum amends Item 17 of the FDD, "Renewal, Termination, Transfer and Dispute Resolution," to include additional paragraphs that address the relationship between the franchise agreement and Washington state law. It clarifies that the Washington statute, RCW 19.100.180, and relevant court decisions may supersede the license agreement, particularly in areas of termination and renewal. Furthermore, it mandates that arbitration involving a franchise purchased in Washington must occur within the state or in a mutually agreed-upon location. In case of conflicting laws, the addendum specifies that the Washington Franchise Investment Protection Act will prevail.
For a prospective Buns On Fire franchisee in Washington, this means that certain clauses in the standard franchise agreement may be modified or unenforceable to the extent that they conflict with Washington law. The addendum also protects franchisees by ensuring that waivers of rights are only valid under specific conditions, such as when executed pursuant to a negotiated settlement with independent counsel. Transfer fees are also limited to the franchisor's reasonable costs. Therefore, the effectiveness of the addendum is directly dependent on the Washington Franchise Investment Protection Act, as it serves to align the franchise agreement with the legal requirements of the state.