What is the significance of RCW 19.100.220(2) regarding releases or waivers for Chesters franchisees 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, RCW 19.100.220(2) of the Washington Franchise Investment Protection Act significantly restricts the enforceability of any release or waiver of rights by a Chesters franchisee. This law generally voids any release or waiver that compels a franchisee to surrender their rights under the Act. However, there is a specific exception.
The exception, as defined by RCW 19.100.220(2), allows such releases or waivers to be valid only if they are part of a negotiated settlement reached after the franchise agreement is already in effect. Furthermore, for the waiver to be valid, both Chesters and the franchisee must be represented by independent legal counsel during these negotiations. This provision ensures that franchisees are not pressured into unknowingly giving up their rights, especially during the initial stages of the franchise relationship.
This protection extends to releases or waivers executed during a renewal or transfer of the Chesters franchise. These are also void unless they meet the same conditions specified in RCW 19.100.220(2): a negotiated settlement after the agreement is in effect, with both parties having independent legal representation. This aspect of the Washington Franchise Investment Protection Act aims to safeguard franchisees from potential overreach by Chesters, ensuring they can only relinquish their rights under very specific and protected circumstances.