When is a release or waiver of rights in the Cinnabon franchise agreement valid under Washington Franchise Investment Protection Act?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ent or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise. There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor. Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
- 3. Site of Arbitration, Mediation, and/or Litigation. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state o
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement or related documents is generally considered void if it requires a franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act. However, there is an exception. Such a release or waiver is valid only if it meets specific conditions outlined in RCW 19.100.220(2).
Specifically, the release or waiver must be executed as part of a negotiated settlement that occurs after the franchise agreement is already in effect. This means the agreement to waive rights cannot be a condition of entering into the franchise initially. Furthermore, for the waiver to be valid, both Cinnabon and the franchisee must be represented by independent legal counsel during the negotiation of the settlement. This requirement ensures that the franchisee has proper advice and is not pressured into relinquishing their rights unknowingly.
Additionally, any release or waiver connected to the renewal or transfer of a Cinnabon franchise is also void unless it adheres to the same conditions specified in RCW 19.100.220(2). This provision aims to protect franchisees during critical junctures in the franchise lifecycle, ensuring they are not coerced into waiving their rights as a condition of renewing their agreement or transferring their franchise to another party. These stipulations are crucial for prospective Cinnabon franchisees in Washington to understand, as they define the circumstances under which their rights under the Washington Franchise Investment Protection Act can be validly waived.