Under what circumstances is a release or waiver of rights valid for a Chesters franchise agreement?
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 release or waiver of rights within the franchise agreement or related documents, which aims to prevent a franchisee from complying with any provision under the Washington Franchise Investment Protection Act, is generally void. However, there is an exception to this rule.
Such a release or waiver is considered valid only if it is executed as part of a negotiated settlement. This settlement must occur after the franchise agreement has already taken effect. Furthermore, for the release or waiver to be valid, both parties, the franchisor and the franchisee, must be represented by independent legal counsel during the negotiation and execution of the settlement, in accordance with RCW 19.100.220(2).
Additionally, Chesters specifies that any release or waiver executed in connection with a renewal or transfer of a franchise is also void unless it meets the same conditions outlined in RCW 19.100.220(2), requiring a negotiated settlement after the agreement is in effect and representation by independent counsel. This ensures that franchisees are protected from unknowingly or unfairly relinquishing their rights under the Washington Franchise Investment Protection Act during the course of their franchise relationship with Chesters.