factual

What is the full name of the Washington statute that protects Chicken Guy franchisees?

Q: What is the full name of the Washington statute that protects Chicken Guy franchisees?

- 18. **Advisory Regarding Franchise Brokers.** Under the Washington Franchise Investment Protection Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise. Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

1. Advisory Regarding Franchise Brokers. Under the Washington Franchise Investment Protection Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)

What This Means (2025 FDD)

According to the 2025 Chicken Guy Franchise Disclosure Document, the Washington statute that protects franchisees is the Washington Franchise Investment Protection Act. Specifically, the FDD mentions that under this Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises. The FDD clarifies that a franchise broker represents Chicken Guy and is paid a fee for referring prospects and/or selling the franchise.

This information is included in an advisory regarding franchise brokers, advising prospective Chicken Guy franchisees to carefully evaluate any information provided by a franchise broker about the franchise opportunity. This is because the broker is working on behalf of Chicken Guy, not the franchisee.

This disclosure serves to protect potential franchisees by ensuring they are aware of the broker's role and potential biases, encouraging them to conduct their own due diligence and seek independent advice before making any investment decisions.

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.

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