How does the Washington Addendum affect the interpretation of the Chesters franchise agreement?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
WASHINGTON ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT, THE FRANCHISE AGREEMENT, FRANCHISE REPRESENTATIONS, AND RELATED AGREEMENTS
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
-
- Conflict of Laws.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
-
- Franchisee Bill of Rights. RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise.
There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor.
Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
Site of Arbitration, Mediation, and/or Litigation.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
In addition, if litigation is 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.
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).
-
- Statute of Limitations and Waiver of Jury Trial.
Provisions contained in the franchise agreement or related agreements that unreasonably restrict or limit the sta
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the Washington Addendum modifies the standard franchise agreement for franchisees in Washington state. This addendum is an integral part of the franchise agreement if (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
Specifically, in the event of conflicting laws, the Washington Franchise Investment Protection Act (chapter 19.100 RCW) will take precedence. Furthermore, RCW 19.100.180, also known as the Franchisee Bill of Rights, may supersede provisions in the franchise agreement, especially concerning termination and renewal. Court decisions may also override the franchise agreement, emphasizing that all franchise agreement provisions are subject to state law.
The addendum also addresses dispute resolution. For any arbitration or mediation involving a Chesters franchise purchased in Washington, the venue will be in Washington state or a location mutually agreed upon. Franchisees may also bring legal action in Washington if litigation isn't precluded by the franchise agreement, particularly for issues related to the sale of franchises or violations of the Washington Franchise Investment Protection Act. Any release or waiver of rights that requires a franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act is void unless 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). Provisions that unreasonably restrict the statute of limitations for claims or waive the right to a jury trial may not be enforceable.
Moreover, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Chesters or its representatives. Provisions that prohibit a franchisee from communicating with regulators are unlawful under RCW 19.100.180(2)(h). Franchisees working with a franchise broker are advised to carefully evaluate the information provided, as the broker represents Chesters and is paid a fee for referrals and sales.