Does the Chicken Guy Washington Addendum specifically mention waiver of rights or remedies under the Washington Franchise Investment Protection Act?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
tion). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provision contained in the franchise agreement or elsewhere that conflicts with these limitations is void and unenforceable in Washington.
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- Nonsolicitation Agreements. RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. 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 franchi
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, the Washington Addendum addresses waivers related to the Washington Franchise Investment Protection Act. Specifically, it states that any provisions in the franchise agreement that could be interpreted as a waiver of claims under any applicable state franchise law are invalid in Washington. This includes protection against fraud in the inducement and disclaiming reliance on statements made by Chicken Guy or its representatives.
This addendum ensures that franchisees in Washington retain their rights and remedies under the Washington Franchise Investment Protection Act, preventing Chicken Guy from enforcing clauses that might compromise those rights. This protection extends to statements, questionnaires, or acknowledgments signed by the franchisee during the franchise commencement, ensuring these cannot waive their rights under the state's franchise law.
Furthermore, the Washington Addendum addresses prohibitions on communicating with regulators, stating that any provision preventing a franchisee from communicating with or complaining to regulators is inconsistent with the Franchise Disclosure Document and unlawful under Washington law (RCW 19.100.180(2)(h)). This reinforces the franchisee's right to report concerns without fear of reprisal, aligning with franchise regulations that promote transparency and fair dealing between franchisors and franchisees.
Additionally, Chicken Guy has obtained a $100,000 surety bond, contingent upon maintaining coverage acceptable to the Administrator 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 financial safeguard for franchisees in Washington, demonstrating Chicken Guy's commitment to compliance with state regulations and offering an additional layer of protection for franchisees.