What are the requirements for a negotiated settlement involving a release or waiver of rights 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's 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement or related documents, which aims to prevent a franchisee from complying with the Washington Franchise Investment Protection Act, is generally void. However, there is an exception if the release or waiver is part of a negotiated settlement.
For such a release or waiver to be valid in Washington, it must be executed as part of a negotiated settlement that occurs after the franchise agreement is already in effect. Additionally, both Chesters and the franchisee must be represented by independent legal counsel during the negotiation and execution of the settlement. This requirement is in accordance with RCW 19.100.220(2), the relevant section of the Revised Code of Washington.
Furthermore, any release or waiver connected to the renewal or transfer of a Chesters franchise is also void unless it adheres to the same conditions specified in RCW 19.100.220(2). This means that even during a renewal or transfer, the franchisee must have independent counsel and the release must be part of a negotiated settlement to be considered valid under Washington law. This provision aims to protect franchisees from unknowingly or unfairly relinquishing their rights under the Washington Franchise Investment Protection Act.