For C12 Group franchises in Washington, what is the impact of the Washington Franchise Investment Protection Act on the franchise agreement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Provisions such as those which 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.
Source: Item 23 — RECEIPTS (FDD pages 46–137)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the Washington Franchise Investment Protection Act (WFIPA) has several important impacts on franchise agreements for franchises operating in Washington state. In the event of a conflict between the franchise agreement and the WFIPA, the provisions of the WFIPA will take precedence. This means that certain terms in the standard C12 Group franchise agreement may be superseded by Washington state law to protect the franchisee.
Specifically, RCW 19.100.180, a section of the WFIPA, may override aspects of the franchise agreement related to termination and renewal. Additionally, court decisions in Washington could also supersede the franchise agreement in these areas. This indicates that C12 Group franchisees in Washington have certain statutory rights regarding the termination and renewal of their franchises that cannot be overridden by the standard terms of the franchise agreement.
Furthermore, the FDD states that in any arbitration or mediation involving a C12 Group franchise purchased in Washington, the venue must be in Washington state or a location mutually agreed upon, or as determined by the arbitrator or mediator. Franchisees also have the right to bring legal action in Washington for issues related to the sale of the franchise or violations of the WFIPA, provided litigation isn't precluded by the franchise agreement. Any release or waiver of rights by a franchisee cannot include rights under the WFIPA unless it's part of a negotiated settlement with independent counsel after the agreement is in effect. Provisions that unreasonably restrict the statute of limitations or rights to a jury trial may not be enforceable.