Are there any exceptions to the rule that a release or waiver of rights by a Cinnaholic franchisee in Washington is considered void?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
General Release.** 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 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, a release or waiver of rights by a franchisee in Washington is generally void, with a specific exception. Such a release is permissible if it's part of a negotiated settlement reached after the franchise agreement is already in effect. Additionally, both Cinnaholic and the franchisee must be represented by independent legal counsel during these negotiations. This exception is in accordance with Washington state law (RCW 19.100.220(2)).
This exception also applies to releases or waivers executed in connection with a renewal or transfer of a Cinnaholic franchise, again adhering to the stipulations outlined in RCW 19.100.220(2). This means that even during a renewal or transfer, the franchisee's rights are protected unless the specific conditions of a negotiated settlement with independent counsel representation are met.
This provision aims to protect Cinnaholic franchisees in Washington from unknowingly or unfairly relinquishing their rights under the Washington Franchise Investment Protection Act. The requirement for independent legal counsel ensures that franchisees receive proper advice and representation when making decisions that could impact their legal rights. Prospective franchisees should be aware of these protections and ensure they understand their rights under Washington law.