Under what conditions is a release or waiver of rights by a Carvel franchisee 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 in Washington is generally void if it requires the franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act (WFIPA) or its rules.
However, there is an exception: such a release or waiver is valid if it's part of a negotiated settlement agreed upon after the franchise agreement is already in effect. In this case, the franchisee must be represented by independent counsel, and the settlement must comply with RCW 19.100.220(2). This statute likely outlines specific requirements for such settlements to ensure fairness and informed consent.
Additionally, any release or waiver executed when renewing or transferring a Carvel franchise is also void unless it meets the conditions specified in RCW 19.100.220(2). This means that franchisees should be especially cautious about signing any releases or waivers during renewal or transfer, and should seek independent legal advice to ensure their rights under the WFIPA are protected. Carvel franchisees should be aware of these stipulations to ensure they do not unknowingly surrender their legal rights under the Washington Franchise Investment Protection Act.