Are there any circumstances under which a Chicken Guy franchisee can waive compliance with the Washington Franchise Investment Protection Act?
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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- 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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- 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.
Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect.
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, franchisees in Washington cannot waive compliance with the Washington Franchise Investment Protection Act. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under any applicable state franchise law, including fraud in the inducement. This protection extends to disclaiming reliance on statements made by Chicken Guy or anyone acting on their behalf. This provision overrides any conflicting terms in any document related to the franchise agreement.
This means that Chicken Guy franchisees in Washington retain all rights and protections afforded to them under the Washington Franchise Investment Protection Act. They cannot be compelled to sign away these rights as a condition of starting or maintaining their franchise. This is a significant protection for franchisees, ensuring they can pursue legal remedies if they believe they have been misled or defrauded.
Furthermore, any provision in the franchise agreement or related documents that prohibits a Chicken Guy franchisee from communicating with or complaining to regulators is unlawful under Washington law (RCW 19.100.180(2)(h)). This ensures franchisees can report concerns to the appropriate authorities without fear of reprisal. Chicken Guy also maintains a $100,000 surety bond, contingent upon providing initial training and being open for business, further safeguarding franchisees' interests in Washington.