When is a release or waiver of rights in the Chesters franchise agreement NOT void 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's 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement or related documents is generally considered void in Washington state if it requires the franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act. However, there is an exception to this rule.
Such a release or waiver is not void if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. In addition, both parties, Chesters and the franchisee, must be represented by independent legal counsel during these negotiations. This exception is in accordance with Washington state law RCW 19.100.220(2).
Furthermore, any release or waiver connected to the renewal or transfer of a Chesters franchise is also void unless it meets the conditions specified in RCW 19.100.220(2), meaning it must be part of a negotiated settlement with independent legal representation for both parties. This provision aims to protect franchisees from unknowingly or unfairly relinquishing their rights under the Washington Franchise Investment Protection Act during the course of their franchise relationship with Chesters.