Under what conditions does the Washington Addendum apply to a Carls Jr. franchise agreement?
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, the Washington Addendum is an integral part of the franchise agreement and modifies the standard agreement under specific conditions related to the state of Washington. This addendum applies if the offer to sell the Carls Jr. franchise is accepted in Washington, if the purchaser of the franchise is a resident of Washington, or if the franchised business will be located or operated, either wholly or partly, in Washington.
This means that if a prospective franchisee lives in Washington, is opening a Carls Jr. location in Washington, or accepts the franchise offer while in Washington, the Washington Addendum will be incorporated into their franchise agreement. This addendum ensures that the franchise agreement complies with Washington state laws and protects the franchisee's rights under those laws.
Specifically, the addendum addresses potential conflicts of law, stating that the Washington Franchise Investment Protection Act will prevail in such cases. It also mentions the Franchisee Bill of Rights under Washington law, which may supersede certain provisions in the franchise agreement regarding the franchisee's relationship with Carls Jr., particularly in areas like termination and renewal. Furthermore, the addendum stipulates that any arbitration or mediation involving a franchise purchased in Washington must take place in Washington, unless otherwise agreed upon, and allows franchisees to bring legal actions in Washington related to franchise sales or violations of the Washington Franchise Investment Protection Act.