What is the effect of the Washington Franchise Investment Protection Act on the termination of a Chesters franchise?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise.
There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor.
Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to the 2025 Chesters Franchise Disclosure Document, the Washington Franchise Investment Protection Act (WFIPA) significantly impacts franchise agreements within the state, particularly concerning termination and renewal. RCW 19.100.180, as referenced in the FDD, may supersede specific provisions in the franchise agreement that dictate the relationship between Chesters and its franchisees. This includes aspects related to the termination and renewal of the franchise agreement.
The WFIPA aims to protect franchisees by ensuring certain rights cannot be waived. For example, any statement or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including claims related to fraud. Similarly, provisions that prevent a franchisee from communicating with regulators are unlawful under RCW 19.100.180(2)(h).
Moreover, if there is a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW, will take precedence. This means that even if the franchise agreement specifies another state's laws, the WFIPA will govern the franchise relationship in Washington. Additionally, Chesters cannot repurchase a franchisee's business during the franchise term without the franchisee's consent unless the termination is for good cause, as per RCW 19.100.180(2)(j). These stipulations ensure that Chesters franchisees in Washington are afforded certain protections under state law that may override the standard terms of the franchise agreement.