What is the significance of RCW 19.100.220(2) regarding releases or waivers for Chesters franchises?
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 addresses the conditions under which a franchisee can validly waive their rights under the Act. Generally, any release or waiver of rights that attempts to excuse Chesters from complying with the Washington Franchise Investment Protection Act is void.
However, there is an exception. A franchisee can validly execute a release or waiver if it meets specific conditions outlined in RCW 19.100.220(2). These conditions are that the release or waiver must be part of a negotiated settlement reached after the franchise agreement is already in effect. Additionally, for the waiver to be valid, the franchisee must be represented by independent legal counsel during the negotiation of the settlement.
This provision protects Chesters franchisees in Washington by ensuring they cannot be pressured into giving up their legal rights unless they do so knowingly and with the advice of their own attorney during a legitimate settlement process. It also applies to releases or waivers executed during a renewal or transfer of the franchise.