Can a Chesters franchisee bring an action in Washington if litigation is not precluded by the franchise agreement?

According to Chesters's 2025 Franchise Disclosure Document, a franchisee may bring an action in Washington if the franchise agreement does not preclude litigation. This action or proceeding must arise out of or be connected with the sale of franchises or a violation of the Washington Franchise Investment Protection Act. This stipulation is part of an addendum that applies if the offer to sell a Chesters franchise is accepted in Washington, if the purchaser is a resident of Washington, and/or if the franchised business is to be located or operated, wholly or partly, in Washington.

This provision ensures that Chesters franchisees operating in Washington have the right to seek legal recourse within the state under certain conditions. It protects the franchisee's right to address grievances related to the franchise sale or violations of the Washington Franchise Investment Protection Act. This is particularly important because franchise agreements often contain clauses that dictate where disputes must be resolved, and this provision clarifies that Washington franchisees are not necessarily bound by those clauses if they permit litigation and the dispute falls under the specified conditions.

This does not mean that all disputes can be litigated in Washington. The franchise agreement could still require arbitration or mediation, or specify a different venue for disputes not related to the sale of the franchise or violations of the Washington Franchise Investment Protection Act. Prospective Chesters franchisees should carefully review the franchise agreement and related documents to understand the full scope of their legal rights and obligations, and consult with an attorney to fully understand the implications of this addendum.