What rights or remedies under the Washington Franchise Investment Protection Act might be affected by provisions in the Chesters franchise agreement?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
y grounds for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
WASHINGTON
WASHINGTON ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT, THE FRANCHISE AGREEMENT, FRANCHISE REPRESENTATIONS, AND RELATED AGREEMENTS
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
- Conflict of Laws. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
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- Franchisee Bill of Rights. RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise. There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor. Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
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- Site of Arbitration, Mediation, and/or Litigation. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. 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.
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- General Release. 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).
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- Statute of Limitations and Waiver of Jury Trial. Provisions contained in the franchise agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
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- Transfer Fees. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
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- Termination by Franchisee. The franchisee may terminate the franchise agreement under any grounds permitted under state law.
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- Certain Buy-Back Provisions.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, several provisions within the franchise agreement could potentially affect a franchisee's rights and remedies under the Washington Franchise Investment Protection Act (WFIPA). The FDD includes a Washington Addendum that specifically addresses how the WFIPA interacts with the franchise agreement. In the event of conflicting laws, the WFIPA will take precedence over any conflicting terms in the franchise agreement. This ensures that the protections afforded by Washington state law are upheld for franchisees operating in Washington.
Specifically, the FDD notes that RCW 19.100.180, which outlines a Franchisee Bill of Rights, may supersede certain provisions in the Chesters franchise agreement, particularly those related to termination and renewal. This means that Chesters franchisees in Washington have certain statutory rights regarding the termination or non-renewal of their franchise that cannot be overridden by the standard terms of the franchise agreement. Additionally, any attempts to restrict a franchisee's right to a jury trial or to shorten the statute of limitations for claims under the WFIPA may not be enforceable.
Furthermore, the Chesters FDD states that any release or waiver of rights that requires a franchisee to waive compliance with the WFIPA is void unless it meets specific conditions, such as being part of a negotiated settlement with independent legal representation. Provisions that prevent a franchisee from communicating with regulators are also unenforceable under Washington law. These stipulations are designed to protect franchisees from unknowingly or unfairly relinquishing their rights under the WFIPA. Therefore, prospective Chesters franchisees in Washington should carefully review the Washington Addendum and understand how it modifies the standard franchise agreement to comply with state law.