How might RCW 19.100.180 affect the Christian Brothers Automotive franchise agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Do not sign the Acknowledgment Statement if you are a resident of California, Maryland or Washington or the business is to be operated in California, Maryland or Washington.
As you know, Christian Brothers Automotive Corporation (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Christian Brothers Automotive Corporation franchise ("CBAC franchise"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of a broker acting on behalf of the Franchisor ("Broker") that have not been authorized, or that were not disclosed in the Franchise Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor. This acknowledgment does not waive any liability the franchisor may have under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, RCW 19.100.180, which is part of the Washington Franchise Investment Protection Act, may impact the franchise agreement. Specifically, the Franchise Disclosure Acknowledgment Statement should not be signed by residents of Washington or if the business is to be operated in Washington. This acknowledgment aims to confirm that the franchisee understands the risks of purchasing a franchise and is not relying on unauthorized or misleading statements. However, it explicitly states that the acknowledgment does not waive any liability the franchisor may have under the Washington Franchise Investment Protection Act, including RCW 19.100.
This means that even if a Christian Brothers Automotive franchisee signs an acknowledgment, they still retain their rights under Washington law to pursue claims against the franchisor for violations of the Franchise Investment Protection Act. This includes potential claims related to fraud or misrepresentation. The FDD emphasizes that the acknowledgment is intended to ensure the franchisee is making an informed business decision, but it cannot serve as a shield against liability for Christian Brothers Automotive if they violate Washington franchise law.
For a prospective Christian Brothers Automotive franchisee in Washington, this is a crucial protection. It ensures that any statements or promises made by the franchisor are subject to legal scrutiny under Washington law, and the franchisee cannot inadvertently waive their rights through a standard acknowledgment form. This provision aims to balance the interests of both the franchisor and franchisee, ensuring fair dealing and transparency in the franchise relationship within the state of Washington.