Under what specific circumstance can a Cinnaholic franchisee in Washington waive compliance with the Washington Franchise Investment Protection Act?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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 franchisee in Washington can only waive compliance with the Washington Franchise Investment Protection Act under very specific conditions. The waiver is only valid if it is part of a negotiated settlement reached after the franchise agreement is already in effect. Furthermore, both Cinnaholic and the franchisee must be represented by independent legal counsel during these negotiations. This is in accordance with RCW 19.100.220(2), a specific section of the Revised Code of Washington.
This provision aims to protect franchisees from being coerced into waiving their rights under the Act, especially during the initial stages of the franchise agreement when they may be more vulnerable. By requiring a negotiated settlement with independent counsel, the law ensures that any waiver is made knowingly and voluntarily. This safeguard is particularly important in franchise relationships, where there is often a power imbalance between the franchisor and the franchisee.
Additionally, any release or waiver executed in connection with a renewal or transfer of a Cinnaholic franchise is also void unless it complies with the same conditions outlined in RCW 19.100.220(2). This ensures continued protection for franchisees throughout the duration of their relationship with Cinnaholic, not just at the outset. This requirement highlights the importance of seeking independent legal advice before agreeing to any waivers or releases of rights, especially in the context of franchise agreements.