In the event of conflicting laws, which law prevails for a Carls Jr. franchise in Washington?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
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- Conflict of Laws. 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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- Franchisee Bill of Rights. RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise.
There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor.
Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
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- Site of Arbitration, Mediation, and/or Litigation. 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, if a conflict of laws arises, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW, will take precedence for a Carls Jr. franchise operating in Washington. This addendum is an integral part of the franchise agreement if the offer to sell a franchise is accepted in Washington, the purchaser is a resident of Washington, and/or the franchised business is located or operated in Washington.
This means that the Washington Franchise Investment Protection Act is designed to protect franchisees within the state. If any part of the franchise agreement contradicts this Act, the Act will be the governing law. This protection extends to the franchisee's relationship with Carls Jr., potentially impacting areas such as termination and renewal of the franchise, as the RCW 19.100.180 may supersede conflicting provisions in the franchise agreement.
Furthermore, any arbitration or mediation involving a Carls Jr. franchise purchased in Washington must occur within the state of Washington, unless otherwise agreed upon. Additionally, franchisees have the right to bring legal action in Washington if the dispute arises from the sale of the franchise or a violation of the Washington Franchise Investment Protection Act, provided litigation is not precluded by the franchise agreement. This ensures that franchisees have a local venue for resolving disputes and are not forced to litigate in a different state, which could be more costly and inconvenient.