When is a release or waiver of rights by a Cinnaholic franchisee void under the Washington Franchise Investment Protection Act?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement or related documents is generally void if it requires the franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act, including its rules and orders.
However, there are two exceptions to this rule. The first exception is when the release or waiver is executed as part of a negotiated settlement after the franchise agreement is already in effect. In this case, the waiver is only valid if both Cinnaholic and the franchisee are represented by independent legal counsel, and the settlement adheres to RCW 19.100.220(2), a specific section of Washington law.
The second exception addresses releases or waivers connected to a franchise renewal or transfer. Similar to the first exception, these waivers are also void unless they comply with the conditions outlined in RCW 19.100.220(2). This means that even during a renewal or transfer, a Cinnaholic franchisee cannot be forced to relinquish rights under the Washington Franchise Investment Protection Act unless the strict requirements for negotiated settlements are met.