What specific rights or remedies under the Washington Franchise Investment Protection Act could be limited by provisions in the Chesters franchise agreement?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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.
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- Indemnification.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, several provisions within the franchise agreement or related documents could potentially limit a franchisee's rights and remedies under the Washington Franchise Investment Protection Act. Specifically, any clauses that unreasonably restrict or limit the statute of limitations period for claims, or that affect the right to a jury trial, may not be enforceable in Washington. This means Chesters franchisees in Washington retain their statutory rights to pursue legal claims within the legally defined time frame and to have those claims decided by a jury if they choose.
Additionally, the FDD states that any release or waiver of rights that requires a franchisee to waive compliance with the Washington Franchise Investment Protection Act is void. The only exception is if the release is executed as part of a negotiated settlement after the franchise agreement is already in effect, and both parties are represented by independent legal counsel. This protects franchisees from unknowingly or unfairly giving up their rights under the Act when signing the initial agreement or during renewals or transfers, ensuring they can only waive these rights under specific, protected circumstances.
Moreover, the addendum to the franchise agreement specifies that provisions in the agreement that allow Chesters to repurchase the franchisee's business without the franchisee's consent are unlawful, unless the termination is for good cause. Similarly, any requirement that a franchisee purchase or rent products or services at prices exceeding fair market value is also unlawful. These stipulations reinforce the franchisee's rights against unfair or exploitative practices by Chesters, ensuring that the franchise agreement adheres to Washington state law designed to protect franchisees.
Finally, any statement, questionnaire, or acknowledgment signed by a Chesters franchisee cannot waive claims under state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Chesters. Also, Chesters cannot prevent a franchisee from communicating with regulators. These protections ensure that franchisees can report issues and seek legal recourse without fear of reprisal or contractual limitations, further safeguarding their rights under Washington law.