What is the relevance of RCW 19.100.220(2) to releases or waivers executed in connection with a renewal or transfer of a Carvel franchise?
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)
According to Carvel's 2025 Franchise Disclosure Document, RCW 19.100.220(2) of the Washington Franchise Investment Protection Act is relevant to releases or waivers executed in connection with the renewal or transfer of a Carvel franchise. Any release or waiver that requires a franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act is void unless it meets specific conditions outlined in RCW 19.100.220(2).
Specifically, for a release or waiver to be valid in Washington state, it must be executed pursuant to a negotiated settlement after the franchise agreement is already in effect. Additionally, both Carvel and the franchisee must be represented by independent legal counsel during the negotiation and execution of the release or waiver. This requirement ensures that franchisees are not pressured into unknowingly giving up their rights under the Washington Franchise Investment Protection Act during the renewal or transfer process.
This provision is designed to protect Carvel franchisees in Washington from potentially unfair or overreaching release agreements. It ensures they have proper legal representation and that any waiver of rights is the result of a genuine negotiation after the franchise relationship has been established. Franchisees should be aware of this protection, especially when considering a renewal or transfer of their Carvel franchise in Washington, and seek independent legal advice to ensure full compliance with RCW 19.100.220(2).