Under what grounds can a Carvel franchisee terminate the franchise agreement in Washington?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- **7.
Termination by Franchisee.** The franchisee may terminate the franchise agreement under any grounds permitted under state law.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee in Washington can terminate the franchise agreement based on any grounds permitted under state law. This is specified in the Washington Addendum to the Franchise Disclosure Document. This means that the franchisee's right to terminate the agreement is governed by the laws of the state of Washington, regardless of what the franchise agreement itself might say.
This provision is important for prospective Carvel franchisees in Washington because it ensures that their termination rights are protected by state law. State laws often provide certain protections to franchisees, such as the right to terminate the agreement if the franchisor violates the law or breaches the agreement. This clause ensures that the franchisee can take advantage of these protections.
It is important for prospective franchisees to understand the specific termination rights available to them under Washington state law. This may involve consulting with an attorney who is familiar with franchise law in Washington. By understanding their rights, franchisees can make informed decisions about whether to terminate the franchise agreement and protect their investment.