When is a release or waiver of rights by a Carvel franchisee NOT considered void under the Washington Franchise Investment Protection Act?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
According to Carvel's 2025 Franchise Disclosure Document, a release or waiver of rights by a franchisee, which would typically waive compliance with the Washington Franchise Investment Protection Act, is not automatically void under specific circumstances.
Specifically, such a release or waiver is permissible if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. Additionally, for the waiver to be valid, both Carvel and the franchisee must be represented by independent legal counsel during these negotiations. This exception is in accordance with RCW 19.100.220(2), a section of the Revised Code of Washington.
This provision aims to protect franchisees from unknowingly or unfairly waiving their rights under the Washington Franchise Investment Protection Act, while still allowing for settlements of disputes reached with proper legal representation. It ensures that franchisees are not pressured into waiving their rights without understanding the implications, especially during the initial agreement phase.
It is important for prospective Carvel franchisees in Washington to understand these stipulations, as any release or waiver not meeting these conditions (negotiated settlement, post-agreement, independent counsel for both parties) is likely to be deemed void and unenforceable.