In Washington, can a franchisee waive rights under the Washington Franchise Investment Protection Act when executing a release or waiver of rights with Chem Dry?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a franchisee in Washington cannot waive their rights under the Washington Franchise Investment Protection Act (WFIPA) when executing a release or waiver of rights, with specific exceptions.
The FDD states that a release or waiver of rights executed by a Chem Dry franchisee in Washington may not include rights under the WFIPA or any rule or order under it. However, there is an exception: such a waiver is permissible if it is executed pursuant to a negotiated settlement after the franchise agreement is already in effect, and only if both parties are represented by independent legal counsel.
The FDD also clarifies that provisions that unreasonably restrict or limit the statute of limitations period for claims under the WFIPA, or rights or remedies under the Act, such as the right to a jury trial, may not be enforceable. This ensures that franchisees retain fundamental protections under Washington law, unless specific conditions for a negotiated settlement with independent counsel are met.