Does the Washington addendum for Buns On Fire allow for waivers of fraud in the inducement claims?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 FDD, the Washington addendum for Buns On Fire addresses waivers of rights under the Washington Franchise Investment Protection Act. It states that a release or waiver of rights executed by a franchisee cannot include rights under this Act unless it meets specific conditions.
Specifically, such a waiver is only permissible if it is part of a negotiated settlement reached after the franchise agreement is already in effect. Furthermore, for the waiver to be valid, the franchisee must be represented by independent legal counsel during these negotiations. This provision aims to protect franchisees from unknowingly or unfairly relinquishing their rights under the Washington Franchise Investment Protection Act.
The addendum also clarifies that provisions that unreasonably restrict or limit the statute of limitations for claims under the Act, or that limit rights or remedies such as the right to a jury trial, may not be enforceable. This ensures that franchisees retain fundamental legal protections despite any potentially conflicting language in the franchise agreement.