Under what circumstances is a release or waiver of rights valid for a Cinnaholic franchisee in Washington?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
- 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. Termination by Franchisee. The franchisee may terminate the franchise agreement under any grounds permitted under state law.
- **8.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, any release or waiver executed during a franchise renewal or transfer is void, except as provided in RCW 19.100.220(2). Provisions in the franchise agreement that unduly restrict the statute of limitations for claims under the Washington Franchise Investment Protection Act, or rights such as a jury trial, may not be enforceable.
Furthermore, any provisions requiring a Cinnaholic franchisee to waive exemplary, punitive, or similar damages are void. An exception exists if the waiver is part of 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 means that Cinnaholic franchisees in Washington retain the right to seek certain damages unless specific conditions are met during a settlement.
In practical terms, a Cinnaholic franchisee in Washington should be aware that they cannot waive their rights to pursue legal claims or certain types of damages under most circumstances. Any attempt by Cinnaholic to include such waivers in the initial franchise agreement is likely unenforceable. However, franchisees should seek independent legal counsel if they are presented with a settlement agreement that includes a waiver of rights to ensure it complies with Washington law and protects their interests.