For C12 Group franchises in Washington, what is the effect of a franchisee's signed statement regarding claims under state franchise law?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
e Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
REQUIRED BY STATE OF WASHINGTON
FOR PROSPECTIVE PURCHASERS IN THE STATE OF WASHINGTON
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise 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 franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
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.
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
Source: Item 23 — RECEIPTS (FDD pages 46–137)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, for prospective purchasers in the State of Washington, any statement, questionnaire, or acknowledgment signed by a franchisee regarding the commencement of the franchise relationship will not waive claims under any applicable state franchise law. This includes claims of fraud in the inducement, nor will it disclaim reliance on any statement made by C12 Group, franchise sellers, or individuals acting on behalf of C12 Group. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
Additionally, in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will take precedence. RCW 19.100.180 may supersede the franchise agreement in the franchisee's relationship with C12 Group, particularly in areas of termination and renewal. Court decisions may also supersede the franchise agreement in these areas.
Furthermore, a release or waiver of rights executed by a franchisee cannot 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 that unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable. These stipulations ensure that franchisees retain their rights and protections under Washington state law, even after signing agreements or acknowledgments.