Are there any circumstances where a Chesters franchisee can waive compliance with the Washington Franchise Investment Protection Act?
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, a franchisee's ability to waive compliance with the Washington Franchise Investment Protection Act is severely restricted. Generally, any release or waiver in the franchise agreement that attempts to waive compliance with the Act, or any rules or orders under it, is considered void.
However, there is a specific exception: a waiver is permissible if it's part of a negotiated settlement reached after the franchise agreement is already in effect. In this case, the franchisee must be represented by independent counsel, and the waiver must comply with RCW 19.100.220(2). This exception recognizes that in certain dispute resolution scenarios, a franchisee, with proper legal advice, may choose to settle a claim even if it means waiving some rights under the Act.
Furthermore, any waiver executed in connection with the renewal or transfer of a Chesters franchise is also void, unless it meets the same conditions outlined in RCW 19.100.220(2)—namely, a negotiated settlement after the agreement is in effect and representation by independent counsel. This provision aims to protect franchisees from being pressured into waiving their rights during critical junctures like renewal or transfer, ensuring they have informed and independent counsel.