When is a release or waiver void for 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 is generally void in Washington if it requires the franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act, including its rules and orders.
However, there are two exceptions to this rule. The first exception is when the release or waiver is executed as part of a negotiated settlement after the franchise agreement is already in effect. In this case, the waiver is only valid if both parties are represented by independent legal counsel. The second exception is when the release or waiver is executed in connection with a renewal or transfer of a franchise, and it also adheres to the conditions outlined in RCW 19.100.220(2), which likely involves similar requirements for independent legal representation and fair negotiation.
This means that Chesters franchisees in Washington have significant protection against unknowingly or unfairly waiving their rights under state franchise law. Any attempt by Chesters to include a blanket waiver in the initial franchise agreement is unenforceable. Franchisees should ensure they have independent legal counsel when negotiating settlements, renewals, or transfers to ensure their rights are protected.