factual

How does the Washington Addendum affect related agreements for a Chesters franchise?

Chesters Franchise · 2025 FDD

Answer from 2025 FDD Document

y grounds for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.

WASHINGTON

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.

  1. 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.

    1. 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.
    1. 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.
    1. 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).
    1. 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.
    1. 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.
    1. Termination by Franchisee. The franchisee may terminate the franchise agreement under any grounds permitted under state law.
    1. Certain Buy-Back Provisions.

Source: Item 23 — **RECEIPTS (FDD pages 48–197)

What This Means (2025 FDD)

According to the 2025 Chesters Franchise Disclosure Document, the Washington Addendum is an integral part of the Franchise Disclosure Document, the franchise agreement, and all related agreements. It modifies these documents for franchises offered, sold, or operated in Washington state. This means that any existing terms in the standard franchise agreement are subject to change or override by the provisions outlined in the Washington Addendum.

Specifically, in the event of conflicting laws, the Washington Franchise Investment Protection Act will take precedence. Furthermore, RCW 19.100.180, which outlines the Franchisee Bill of Rights, may supersede provisions in the franchise agreement or related agreements, especially concerning termination and renewal of the franchise. Court decisions may also override the franchise agreement concerning the franchisee's relationship with Chesters.

Additionally, any release or waiver of rights that requires a franchisee to waive compliance with the Washington Franchise Investment Protection Act is void unless it meets specific conditions. These conditions include being part of a negotiated settlement after the agreement is in effect and having both parties represented by independent counsel. Provisions that unreasonably limit the statute of limitations for claims or waive the right to a jury trial under the Act may also be unenforceable. Any provision prohibiting a franchisee from communicating with regulators is unlawful.

For a prospective Chesters franchisee in Washington, this addendum provides additional protections and clarifies the legal framework governing the franchise relationship within the state. It is crucial to carefully review the Washington Addendum alongside the standard franchise agreement to understand the full scope of rights and obligations, as the addendum modifies and supersedes conflicting terms in the original agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.