In Washington, can the Chem Dry Franchise Agreement be superseded by state statutes or court decisions regarding termination and renewal?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
WASHINGTON
The state of Washington has a statute, RCW 19.100.180 which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your franchise.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. 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.
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial may not be enforceable.
Transfer fees are collectable to the extent that they reflect the Franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the Franchise Agreement in Washington state may be superseded by state statutes or court decisions, especially concerning termination and renewal. Specifically, RCW 19.100.180, a Washington state statute, may take precedence over the Chem Dry Franchise Agreement in matters of termination and renewal. Additionally, court decisions in Washington could also supersede the agreement in these areas.
This means that certain provisions in the Chem Dry franchise agreement regarding termination or renewal might not be enforceable if they conflict with Washington state law. Franchisees in Washington have additional protections under the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, which will prevail in case of any conflict of laws.
For any arbitration or mediation involving a Chem Dry franchise purchased in Washington, the venue must be in Washington state or a location mutually agreed upon. Franchisees also have the right to bring legal action in Washington if it arises from the sale of franchises or violations of the Washington Franchise Investment Protection Act, provided litigation isn't precluded by the franchise agreement. Furthermore, any release or waiver of rights by a franchisee cannot include rights under the Washington Franchise Investment Protection Act unless it's part of a negotiated settlement with independent legal representation. Transfer fees are collectable only to the extent that they reflect Chem Dry's reasonable costs in effecting a transfer.