Are the provisions in the Carls Jr. franchise agreement concerning the relationship between the franchisee and franchisor, including termination and renewal, subject to state law in Washington?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
, 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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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the franchise agreement provisions, including those about the relationship between the franchisee and franchisor, are subject to state law in Washington. Specifically, RCW 19.100.180, the Franchisee Bill of Rights within the Washington Franchise Investment Protection Act, may supersede provisions in the franchise agreement or related agreements concerning the franchisee's relationship with Carls Jr., especially in areas of termination and renewal.
Additionally, court decisions in Washington could also override the franchise agreement or related agreements regarding the franchisee's relationship with Carls Jr. This means that certain terms in the franchise agreement might not be enforceable if they conflict with Washington state law or court rulings.
Carls Jr.'s FDD also includes an addendum applicable to franchisees in Washington, which addresses conflict of laws, stating that the provisions of the Washington Franchise Investment Protection Act will prevail in such cases. This addendum further emphasizes the importance of understanding Washington state law when entering into a franchise agreement with Carls Jr. if the franchise is located or operated in Washington.