What specific rights are Chesters franchisees unable to waive in the franchise agreement 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. 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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- 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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- Waiver of Exemplary & Punitive Damages. RCW 19.100.190 permits franchisees to seek treble damages under certain circumstances. Accordingly, provisions contained in the franchise agreement or elsewhere requiring franchisees to waive exemplary, punitive, or similar damages are 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).
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- Franchisor's Business Judgement.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, several provisions in the franchise agreement are unenforceable in Washington. Franchisees cannot waive compliance with any provision under the Washington Franchise Investment Protection Act unless the waiver is part of a negotiated settlement, agreed to after the franchise agreement is in effect, and the franchisee is represented by independent counsel. This protection extends to waivers made during franchise renewal or transfer, with the same conditions applying for the waiver to be valid.
Additionally, Chesters's franchise agreement cannot unreasonably restrict the statute of limitations for claims under the Washington Franchise Investment Protection Act, nor can it limit rights or remedies under the Act, such as the right to a jury trial. Any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including claims of fraud, or disclaim reliance on statements made by Chesters or its representatives.
Furthermore, Chesters cannot include provisions that prevent a franchisee from communicating with or complaining to regulators, as this is inconsistent with the Franchise Disclosure Document and unlawful under Washington law. Franchisees also cannot be required to purchase or rent products or services from Chesters at prices exceeding fair and reasonable market value. Provisions requiring franchisees to waive exemplary, punitive, or similar damages are void unless agreed to in a negotiated settlement with independent counsel after the agreement is in effect.
Finally, Chesters is prohibited from restricting a franchisee from soliciting or hiring employees of other Chesters franchisees or employees of Chesters itself. These stipulations ensure that Washington franchisees retain important legal rights and protections, preventing Chesters from imposing unduly restrictive or unfair terms.