If litigation is not precluded by the Carvel franchise agreement, where can a franchisee bring an action arising from the sale of franchises or a violation of the Washington Franchise Investment Protection Act?

According to Carvel's 2025 Franchise Disclosure Document, if the franchise agreement does not preclude litigation, a franchisee can initiate legal action in Washington. This action can arise from issues related to the sale of franchises or violations of the Washington Franchise Investment Protection Act. This stipulation is part of an addendum specifically for franchisees in Washington, highlighting the importance of adhering to Washington's franchise laws.

This provision ensures that Carvel franchisees in Washington have a local legal avenue to address grievances related to franchise sales or violations of the state's investment protection act. It means that franchisees are not necessarily required to pursue legal action in a different state, which could be more costly and inconvenient. The FDD also states that Washington law will prevail in the event of a conflict of laws.

This protection is significant because it allows franchisees to resolve disputes under the legal framework of their own state, where they conduct their business. The FDD also includes stipulations that protect franchisees from unknowingly waiving their rights under Washington franchise law. For example, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law or disclaim reliance on statements made by Carvel or its representatives.

Prospective Carvel franchisees in Washington should carefully review the franchise agreement and related documents to understand their rights and obligations under the Washington Franchise Investment Protection Act. They should also consult with an attorney to ensure they fully understand the implications of this provision and how it protects their interests.