Under what conditions is a release or waiver of rights valid for a Chesters franchise in Washington?
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 waive compliance with any provision of the Washington Franchise Investment Protection Act, is generally considered void.
However, there is an exception: such a release or waiver is valid if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. Additionally, for the release or waiver to be valid, both parties (Chesters and the franchisee) must be represented by independent legal counsel. This condition is in accordance with Washington state law, specifically RCW 19.100.220(2).
Furthermore, any release or waiver connected to the renewal or transfer of a Chesters franchise is also void unless it meets the same conditions outlined in RCW 19.100.220(2). This means that even during a renewal or transfer, the franchisee's rights under the Washington Franchise Investment Protection Act are protected unless the waiver is part of a negotiated settlement with independent legal representation for both parties. This ensures that franchisees are not pressured into unknowingly giving up their legal protections during critical phases of the franchise lifecycle.