Can a Chesters franchisee waive compliance with the Washington Franchise Investment Protection Act?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, a franchisee's ability to waive compliance with the Washington Franchise Investment Protection Act is restricted. A general release or waiver of rights within the franchise agreement that attempts to bind the franchisee to waive compliance with any provision under this Act is considered void.
However, there is an exception: such a waiver is permissible if it's executed as part of a negotiated settlement after the franchise agreement is already in effect. In this specific case, the franchisee must be represented by independent counsel, aligning with RCW 19.100.220(2). This exception ensures that any waiver is made knowingly and voluntarily, with the franchisee having the benefit of legal advice.
Furthermore, any release or waiver connected to the renewal or transfer of a Chesters franchise is also void unless it meets the same conditions outlined in RCW 19.100.220(2). This provision aims to protect franchisees during critical junctures like renewal or transfer, preventing them from being coerced into waiving their rights without proper representation and informed consent. These stipulations are designed to safeguard franchisees' rights under Washington law, ensuring they are not unknowingly or unfairly relinquishing legal protections.