factual

If litigation is not precluded by the Chesters franchise agreement, where can a franchisee bring an action related to the sale of franchises in Washington?

Chesters Franchise · 2025 FDD

Answer from 2025 FDD Document

In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.

Source: Item 23 — **RECEIPTS (FDD pages 48–197)

What This Means (2025 FDD)

According to Chesters's 2025 Franchise Disclosure Document, if the franchise agreement does not preclude litigation, a franchisee in Washington may initiate legal action or proceedings related to the sale of franchises or any violation of the Washington Franchise Investment Protection Act within Washington state. This condition is specifically applicable to franchises purchased or operated in Washington.

This provision ensures that Chesters franchisees in Washington have a local legal avenue to address issues arising from the franchise sale or violations of state franchise laws. It protects the franchisee's right to seek justice within their own state, avoiding the potential burden and expense of pursuing legal action in a different jurisdiction. This is particularly important because franchise agreements often contain clauses that dictate the venue for disputes, which could otherwise force franchisees to litigate in a location that is less convenient or more costly for them.

The Washington Addendum modifies the standard franchise agreement to align with Washington state law, which includes provisions that may supersede the original agreement. This ensures that franchisees' rights are protected under local law, regardless of what the standard franchise agreement might state. Franchisees should carefully review the Washington Addendum and understand their rights under the Washington Franchise Investment Protection Act.

It is important for prospective Chesters franchisees in Washington to understand the circumstances under which they can bring an action in Washington. They should consult with an attorney to fully understand their rights and options in case of a dispute with the franchisor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.