To what extent are transfer fees collectable for Care Plus Medical Ucc franchises in Washington?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
WASHINGTON ADDENDUM TO DISCLOSURE DOCUMENT AND RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT
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.
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 limitation 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 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, Washington state law includes specific stipulations that may supersede the standard franchise agreement, particularly concerning franchise termination and renewal. Additionally, court decisions in Washington could also take precedence over the franchise agreement in these areas.
Regarding arbitration, for franchises purchased in Washington, the arbitration site must be within the state of Washington or at a location mutually agreed upon during the arbitration, or as determined by the arbitrator. In cases of conflicting laws, the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will govern.
Furthermore, any release or waiver of rights executed by a Care Plus Medical Ucc franchisee cannot waive rights under the Washington Franchise Investment Protection Act unless it is part of a negotiated settlement after the franchise agreement is in effect and both parties are represented by independent counsel. Provisions that unreasonably restrict the statute of limitations for claims, or limit rights or remedies under the Act, such as the right to a jury trial, may not be enforceable. This suggests that while Care Plus Medical Ucc may outline transfer fee conditions in its standard agreement, Washington law provides additional protections and limitations for franchisees in that state.