What happens if a release or waiver is executed in connection with a renewal or transfer of a Chesters franchise in Washington?
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' 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement or related documents, intended to obligate a franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act, is generally void. There is an exception if the release is part of a negotiated settlement after the franchise agreement is already in effect, and both parties have independent legal representation, as per RCW 19.100.220(2).
Specifically, any such release or waiver executed during the renewal or transfer of a Chesters franchise in Washington is also considered void, unless it meets the conditions outlined in RCW 19.100.220(2). This means that franchisees in Washington cannot be compelled to waive their rights under the Washington Franchise Investment Protection Act when renewing or transferring their franchise, ensuring they retain the protections afforded by state law.
This provision is crucial for prospective Chesters franchisees in Washington because it protects them from potentially unfair or overreaching waivers that could compromise their legal rights during franchise renewal or transfer. Franchisees should ensure they understand their rights under the Washington Franchise Investment Protection Act and seek independent legal counsel when negotiating any releases or waivers to ensure compliance with these regulations.