What rights does a Chicken Guy franchisee have regarding termination and renewal in Washington?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
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- Questionnaires and Acknowledgments. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document executed in connection with the franchise.
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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).
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- Surety Bond. The following language is added to the end of Section 7.A. of the Franchise Agreement:
A surety bond in the amount of $100,000 has been obtained by Chicken Guy. The Washington Securities Division has made the issuance of Chicken Guy's permit contingent upon Chicken Guy maintaining surety bond coverage acceptable to the Administrator until (a) all Washington franchisees have (i) received all initial training that they are entitled to under the Franchise Agreement or Chicken Guy's franchise disclosure document, and (ii) are open for business; or (b) the Administrator issues written authorization to the contrary.
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, specific provisions regarding termination and renewal within the franchise agreement or development agreement are considered void and unenforceable in Washington. This means that any clauses that conflict with Washington state franchise law will not be upheld in the state.
Specifically, any statement, questionnaire, or acknowledgment signed by a Chicken Guy franchisee at the start of their franchise relationship cannot waive claims under Washington's franchise law, including claims related to fraud. This protects franchisees from unknowingly giving up their legal rights. Additionally, franchisees in Washington have the right to communicate with or complain to regulators, and any provision prohibiting such communication is unlawful under Washington law (RCW 19.100.180(2)(h)).
Chicken Guy obtained a surety bond of $100,000. The issuance of Chicken Guy's permit by the Washington Securities Division is contingent upon Chicken Guy maintaining surety bond coverage until all Washington franchisees have completed initial training and are open for business, or until the Administrator issues written authorization to the contrary. This bond provides a level of financial assurance to franchisees in Washington, ensuring that Chicken Guy fulfills its initial training obligations.