What is the name of the Washington state act that the Chicken Guy Washington Addendum refers to?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
ny 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).
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- 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.
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- Item 5: Initial Fees. We have obtained a surety bond in the amount of $100,000.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the Washington Addendum references the "Washington Franchise Investment Protection Act" regarding franchise brokers. Specifically, it defines a "franchise broker" under this Act as someone who engages in the business of offering or selling franchises, representing the franchisor, and receiving a fee for referrals or sales.
This information is relevant for prospective Chicken Guy franchisees in Washington because it advises them to carefully evaluate any information provided by a franchise broker. Franchise brokers are paid by Chicken Guy, creating a potential conflict of interest. Therefore, franchisees should independently verify any claims made by brokers and conduct their own due diligence.
Furthermore, the Washington Addendum also mentions RCW 19.100.180(2)(h) concerning prohibitions on communicating with regulators. Any provision in the franchise agreement that restricts a franchisee from communicating with or complaining to regulators is considered unlawful under this statute. This ensures that Chicken Guy franchisees in Washington have the right to report any issues or concerns to the appropriate regulatory bodies without fear of reprisal.