Under what conditions is a release or waiver of rights by a Cinnaholic franchisee in Washington considered void?
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 and orders, is considered void in Washington.
However, there is an exception: such a release or waiver is valid if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. In this case, both parties must be represented by independent legal counsel, and the settlement must align with RCW 19.100.220(2), which likely outlines specific requirements for such settlements under Washington law.
Furthermore, any release or waiver connected to the renewal or transfer of a Cinnaholic franchise is also void, unless it adheres to the conditions specified in RCW 19.100.220(2). This means that franchisees cannot be compelled to waive their rights under the Washington Franchise Investment Protection Act as a condition of renewing or transferring their franchise, unless the specific conditions for a negotiated settlement are met.