Can a Chatime franchisee bring an action in Washington for violations of the Washington Franchise Investment Protection Act?
Chatime 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.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, a franchisee in Washington may bring an action or proceeding against Chatime if litigation is not precluded by the franchise agreement. This action can arise out of or in connection with the sale of franchises or a violation of the Washington Franchise Investment Protection Act. This means that Chatime franchisees in Washington have the right to sue Chatime for violations of the state's franchise laws, provided the franchise agreement does not contain provisions that prevent such litigation.
This protection is further reinforced by additional stipulations within the Washington Addendum. Specifically, no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Chatime or its representatives. This ensures that franchisees cannot inadvertently forfeit their rights through standard paperwork at the commencement of the franchise relationship.
Moreover, the FDD states that in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act will prevail. RCW §19.100.180 may also supersede the Franchise Agreement in areas of termination and renewal. These provisions collectively strengthen the franchisee's position by ensuring that Washington's franchise laws take precedence over conflicting terms in the franchise agreement, offering additional security and legal recourse for Chatime franchisees operating in Washington.