Does the Washington addendum affect the Buns On Fire franchise agreement nationwide, or only in Washington?
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 for the state of Washington applies specifically to franchises operating within Washington. The document explicitly states that the amendments are made "in connection with the offer and sale of franchises for use in the State of Washington." This means that the changes outlined in the addendum, particularly those concerning Item 17 regarding renewal, termination, transfer, and dispute resolution, are only applicable to Buns On Fire franchisees in Washington.
Specifically, the Washington addendum addresses issues pertinent to Washington state law, such as the Washington Franchise Investment Protection Act. It clarifies that this act and relevant court decisions may supersede the standard franchise agreement in areas like termination and renewal for Washington franchisees. Furthermore, it mandates that arbitration involving a franchise purchased in Washington must occur within the state, unless otherwise agreed upon. These stipulations are designed to protect the rights of franchisees within Washington under their state's specific franchise laws.
For a prospective Buns On Fire franchisee, this means that if they are opening a franchise in Washington, they need to pay close attention to the addendum as it modifies the standard franchise agreement. However, if they are opening a franchise in another state, the Washington addendum does not apply, and they should instead review any addenda specific to their state. Buns On Fire provides addenda for various states, including South Dakota, Virginia, California, Hawaii, Maryland, Rhode Island, and Illinois, each addressing specific legal requirements and franchisee protections relevant to those jurisdictions.