If litigation is not precluded, can a Chesters franchisee bring an action in Washington for a violation of the Washington Franchise Investment Protection Act?

According to Chesters's 2025 Franchise Disclosure Document, a franchisee may bring an action in Washington for a violation of the Washington Franchise Investment Protection Act if litigation is not precluded by the franchise agreement. This means that if the franchise agreement does not contain a clause preventing lawsuits, a franchisee can sue Chesters in Washington state for violations of the state's franchise law. This protection is specifically outlined in the Washington Addendum to the Franchise Disclosure Document.

This provision is significant for prospective Chesters franchisees in Washington because it ensures they have the right to seek legal recourse within their own state if they believe Chesters has violated the Washington Franchise Investment Protection Act. The Act is designed to protect franchisees from unfair practices by franchisors, and this clause reinforces that protection by allowing franchisees to pursue legal action locally.

It is important for potential Chesters franchisees to carefully review the franchise agreement to understand whether any clauses might limit their ability to litigate in Washington. While the FDD states that certain waivers or restrictions on legal rights may not be enforceable, understanding the agreement's terms is crucial. Franchisees should consult with an attorney to fully understand their rights and any limitations that may exist.