What specific rights are franchisees unable to waive in the franchise agreement for a Chesters franchise in Washington?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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 rights cannot be waived by franchisees in Washington State. These protections are primarily related to the Washington Franchise Investment Protection Act.
Specifically, any release or waiver that attempts to waive compliance with any provision under the Washington Franchise Investment Protection Act, or any rules or orders related to it, is considered void. There is an exception: such a waiver is permissible if it's part of a negotiated settlement reached after the franchise agreement is already in effect, and both parties are represented by independent legal counsel, in accordance with RCW 19.100.220(2). This exception also applies to waivers executed during a renewal or transfer of the franchise, again subject to the conditions outlined in RCW 19.100.220(2).
Additionally, Chesters franchisees cannot be held to provisions that unreasonably restrict or limit the statute of limitations for claims under the Washington Franchise Investment Protection Act. Similarly, franchisees cannot waive their rights to remedies under the Act, such as the right to a jury trial. Furthermore, any provision requiring a franchisee to purchase or rent products or services at more than a fair and reasonable price is unlawful under RCW 19.100.180(2)(d). Finally, Chesters cannot restrict a franchisee from soliciting or hiring employees of Chesters or its franchisees.