Are there any exceptions to the rule that waivers executed in connection with a renewal or transfer of a Carvel franchise are void?
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).
The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, in the state of Washington, a release or waiver of rights in the franchise agreement is generally void if it requires the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act. However, there is an exception: such a waiver is permissible if 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 applies to waivers related to the Washington Franchise Investment Protection Act.
Furthermore, the FDD states that any release or waiver executed in connection with a renewal or transfer of a Carvel franchise in Washington is also void, except as provided for in RCW 19.100.220(2). This means that the same exception for negotiated settlements with independent counsel applies to waivers made during franchise renewal or transfer processes.
In Maryland, the general release required as a condition of renewal, sale, and/or assignment/transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that while a franchisee may sign a general release, it will not waive any rights or claims they may have under Maryland's franchise laws. Carvel franchisees should consult with legal counsel to fully understand their rights and obligations regarding waivers and releases, especially during renewals or transfers.