What specific aspects of the franchisor-franchisee relationship might be superseded by RCW 19.100.180 for a Chesters franchise in Washington?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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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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- Fair and Reasonable Pricing. Any provision in the franchise agreement or related agreements that requires the franchisee to purchase or rent any product or service for more than a fair and reasonable price is unlawful under RCW 19.100.180(2)(d).
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Certain Buy-Back Provisions.
Provisions in franchise agreements or related agreements that permit the franchisor to repurchase the franchisee's business for any reason during the term of the franchise agreement without the franchisee's consent are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause.
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- Nonsolicitation Agreements. RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
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- Questionnaires and Acknowledgments. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Prohibitions on Communicating with Regulators. Any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).
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- Franchisor's Business Judgement. Provisions in the franchise agreement or related agreements stating that the franchisor may exercise its discretion on the basis of its reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, several aspects of the franchisor-franchisee relationship could be superseded by Washington's Franchise Investment Protection Act (RCW 19.100.180) for franchisees in Washington state. These include provisions related to termination and renewal of the franchise agreement. This means that the standard terms in Chesters's franchise agreement regarding how the agreement can be ended or extended may not apply in Washington if they conflict with state law.
Additionally, any clauses that require a franchisee to purchase or rent products or services at prices deemed unfair or unreasonable are unlawful under RCW 19.100.180(2)(d). This protects Chesters franchisees from being overcharged for essential supplies or services needed to operate their business. Furthermore, provisions allowing Chesters to repurchase the franchisee's business during the franchise term without the franchisee's consent are unlawful under RCW 19.100.180(2)(j), unless the termination is for good cause.
Moreover, the franchisor cannot restrict a franchisee from soliciting or hiring employees of either another Chesters franchisee or Chesters itself, as per RCW 49.62.060. Any statements, questionnaires, or acknowledgments that waive a franchisee's rights under state franchise law or disclaim reliance on statements made by Chesters are invalid. Similarly, any part of the franchise agreement that stops a franchisee from communicating with regulators is unlawful under RCW 19.100.180(2)(h). Finally, provisions stating that Chesters may exercise its discretion based on reasonable business judgment may be limited by RCW 19.100.180(1), which mandates that both parties deal with each other in good faith.