Are there any exceptions to the rule that a release or waiver of rights is void for a Cinnaholic franchise in Washington?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- **4.
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 the 2025 Cinnaholic Franchise Disclosure Document, a release or waiver of rights within the franchise agreement or related documents that compels a franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act, or its rules, is generally void.
However, there is an exception: such a release or waiver is permissible if it's executed as part of a negotiated settlement after the franchise agreement is already in effect. To be valid, both parties must be represented by independent legal counsel during these negotiations, in accordance with RCW 19.100.220(2).
Furthermore, any release or waiver connected to the renewal or transfer of a Cinnaholic franchise is also void unless it meets the same conditions of a negotiated settlement with independent legal representation, as stipulated in RCW 19.100.220(2). This ensures that franchisees are protected from unknowingly relinquishing their rights under the Washington Franchise Investment Protection Act, except under specific circumstances where they have the benefit of legal advice and are settling a dispute or negotiating a renewal or transfer.