In Washington, is a provision in the Chesters franchise agreement that prohibits a franchisee from communicating with regulators considered lawful?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Prohibitions on Communicating with Regulators. Any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, any provision within the franchise agreement or related documents that prevents a franchisee from communicating with or complaining to regulators is unlawful in Washington. This is explicitly stated in the Washington Addendum to the Franchise Disclosure Document. Such provisions are deemed inconsistent with the instructions provided in the FDD and violate RCW 19.100.180(2)(h).
For a prospective Chesters franchisee in Washington, this means that any clause attempting to restrict their ability to communicate with regulatory bodies is void and unenforceable. Franchisees have the right to report concerns or complaints to regulators without fear of reprisal or legal repercussions from Chesters. This protection is embedded within Washington's Franchise Investment Protection Act.
This addendum modifies the franchise agreement to ensure compliance with Washington law, regardless of any conflicting terms in the original agreement. This ensures that franchisees operating in Washington are afforded the full protections of the state's franchise laws, promoting transparency and fair dealing between Chesters and its franchisees.