In Washington, what is the geographic limit to the applicability of the addendum to the Card My Yard Franchise Agreement?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
urrent portion | 20,994,540 | 17,393,479 | | | Operating lease liabilities, net of current portion | 1,321,919 | 1,070,182 | | | Long-term debt, net of current portion and debt issuance costs | 46,197,321 | 46,148,366 | | | Deferred income tax liabilities | 4,942,067 | 5,507,405 | | | | Total liabilities | 82,249,343 | 77,113,904 |
WASHINGTON ADDENDUM TO THE FRANCHISE AGREEMENT AND RELATED AGREEMENTS
Notwithstanding anything to the contrary set forth in theFranchise Agreement,the following provisions willsupersede and apply to all franchises offered and sold in the State of Washington.
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- The State of Washington has a statute, RCW 19.100.180, which 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.
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
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- A release or waiver of rights signed by a franchisee will not include rights under the Washington Franchise Investment Protection Act or any order or rule thereunder except when signed 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 the right to a jury trial may not be enforceable.
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- Transfer fees are collectable to the extent they reflect the franchisor's reasonable estimated or actual cost in effecting a transfer.
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- Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unles
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard Franchise Disclosure Document, the Washington Addendum supersedes the Franchise Agreement for all franchises offered and sold in the State of Washington. This means that the provisions outlined in the addendum specifically apply to franchisees operating within Washington state, regardless of what the standard franchise agreement states.
The addendum addresses several key areas, including termination and renewal rights, conflicts of law, waivers of rights, transfer fees, and non-competition covenants. For instance, the addendum clarifies that Washington's Franchise Investment Protection Act (Chapter 19.100 RCW) will take precedence in case of any legal conflicts. It also states that franchisees cannot waive their rights under this Act unless it's part of a negotiated settlement with independent counsel.
Furthermore, the addendum addresses the enforceability of non-competition covenants, stating that they are void and unenforceable against an employee of a franchisee if the employee's annualized earnings are below $100,000 (adjusted annually for inflation) and against independent contractors if their earnings are below $250,000 (also adjusted annually for inflation). Therefore, any conflicting provisions in the franchise agreement are void within Washington. This ensures that Card My Yard franchisees in Washington operate under specific legal protections and limitations distinct to the state.