What rights or remedies under the Washington Franchise Investment Protection Act may not be limited by provisions in the Cinnaholic franchise agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
- 5. Statute of Limitations and Waiver of Jury Trial. Provisions contained in the franchise agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
- 6. Transfer Fees. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
- **7.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, several rights and remedies under the Washington Franchise Investment Protection Act cannot be limited by the franchise agreement. Specifically, provisions that unreasonably restrict or limit the statute of limitations period for claims, or rights to remedies such as a jury trial, may not be enforceable. This ensures that franchisees retain their legal rights under the Act.
Additionally, any release or waiver of rights that requires a franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act is void. The exception is if the release is executed pursuant to a negotiated settlement after the franchise agreement is in effect, and both parties are represented by independent counsel, as per RCW 19.100.220(2). This protects franchisees from unknowingly or unfairly relinquishing their rights.
Moreover, the Cinnaholic franchise agreement cannot prohibit a franchisee from communicating with or complaining to regulators, as this is unlawful under RCW 19.100.180(2)(h). This ensures franchisees can report issues without fear of reprisal. Furthermore, noncompetition covenants that conflict with the limitations set forth in RCW 49.62.020 and 49.62.030 regarding employee and independent contractor earnings are void and unenforceable. Similarly, franchisors cannot restrict franchisees from soliciting or hiring employees of other franchisees or the franchisor, as per RCW 49.62.060. These stipulations collectively reinforce the protections afforded to Cinnaholic franchisees under Washington law.