If a Cinnaholic franchisee in Washington brings an action or proceeding related to a violation of the Washington Franchise Investment Protection Act, is litigation precluded by the franchise agreement?

According to Cinnaholic's 2025 Franchise Disclosure Document, if a Cinnaholic franchisee in Washington brings an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, litigation is not precluded by the franchise agreement. This means a franchisee can pursue legal action in Washington state courts for such violations.

This protection is further reinforced by stipulations regarding releases and waivers. Any release or waiver of rights that would prevent a franchisee from complying with the Washington Franchise Investment Protection Act is void unless it's part of a negotiated settlement with independent legal representation after the franchise agreement is already in effect, as per RCW 19.100.220(2). This ensures franchisees cannot unknowingly or unfairly surrender their legal rights under the Act.

Additionally, the FDD states that any limitations on the statute of limitations or waivers of rights, such as the right to a jury trial, related to claims under the Washington Franchise Investment Protection Act may not be enforceable. This safeguards the franchisee's ability to seek remedies under the Act without undue restrictions imposed by the franchise agreement. These stipulations collectively aim to protect Cinnaholic franchisees in Washington and ensure they have legal recourse for violations of the state's franchise laws.