What Washington state law makes it unlawful for a Chesters franchise agreement to prohibit communication with regulators?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Washington state law RCW 19.100.180(2)(h) makes it unlawful for any provision in the franchise agreement or related agreements to prohibit a franchisee from communicating with or complaining to regulators. This law is in place because such provisions are inconsistent with the express instructions in the Franchise Disclosure Document.
For a prospective Chesters franchisee in Washington, this means that the franchise agreement cannot legally prevent them from contacting regulatory bodies with concerns or complaints. This protection ensures franchisees can report issues without fear of reprisal from Chesters.
This addendum to the franchise disclosure document is an integral part of the franchise agreement, especially if the offer to sell a franchise is accepted in Washington, the purchaser of the franchise is a resident of Washington, and/or the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.