Is a Chesters franchise agreement provision that prohibits a franchisee from communicating with regulators enforceable?

According to the 2025 Chesters Franchise Disclosure Document, specifically regarding Washington State, any provision within the franchise agreement or related agreements that prevents a franchisee from communicating with or complaining to regulators is not enforceable. Such a provision is considered inconsistent with the instructions provided in the Franchise Disclosure Document and is unlawful under Washington law RCW 19.100.180(2)(h). This protection ensures that franchisees in Washington are free to communicate with regulatory bodies without fear of reprisal from Chesters.

This stipulation is particularly important for prospective Chesters franchisees in Washington because it safeguards their right to report any concerns or violations to the appropriate regulatory agencies. This protection can cover a range of issues, such as health and safety concerns, financial discrepancies, or breaches of franchise law. Without this safeguard, franchisees might hesitate to report issues, fearing legal repercussions from Chesters, which could lead to a less transparent and potentially unfair business environment.

It is important to note that this provision specifically applies to franchises operating in Washington State, due to the state's franchise laws. Franchisees in other states may not have the same protection, so it's crucial to review the specific addenda and legal provisions applicable to their state. This highlights the importance of carefully reviewing the FDD and any state-specific addenda with legal counsel to fully understand your rights and obligations as a Chesters franchisee.