What is the Carvel franchisee prohibited from doing regarding settlement of a claim without Carvel's consent?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- **4.
General Release.** A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
Based on the 2025 Carvel Franchise Disclosure Document, a franchisee operating in Washington state is restricted from releasing or waiving rights in the franchise agreement or related agreements that would waive compliance with any provision under the Washington Franchise Investment Protection Act, or any rules or orders thereunder.
However, this prohibition does not apply if the release is executed pursuant to a negotiated settlement after the agreement is in effect and both parties are represented by independent counsel, in accordance with RCW 19.100.220(2). This exception allows for settlements under specific conditions where both parties have legal representation.
Furthermore, any such release or waiver executed in connection with a renewal or transfer of a Carvel franchise is also void unless it meets the same conditions as above, as provided for in RCW 19.100.220(2). This ensures that franchisees are protected from unknowingly waiving their rights, especially during critical junctures like renewal or transfer, unless they have received proper legal advice and the settlement is genuinely negotiated.