What is the impact of the Washington Franchise Investment Protection Act on the City Wide franchise agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
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- Conflict of Laws. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
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- Franchisee Bill of Rights. RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning you relationship with the franchisor, including the areas of termination and renewal of your franchise.
There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor.
Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
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- Site of Arbitration, Mediation, and/or Litigation. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon a the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of the arbitration or mediation.
In addition, if litigation is not precluded by the franchise agreement, a franchisee my bring actions or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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- General Release. A release or waiver of rights in the franchise agreement or related agreements purporting to bind he 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 an d 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 likely void except as provided for in RCW 19.100.220(2).
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- Statute of Limitations and Waiver of Jury Trial. Provision contained int eh 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.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Washington Franchise Investment Protection Act (WFIPA) has several key impacts on the franchise agreement for franchisees operating in Washington. Firstly, in the event of any conflict between the franchise agreement and the WFIPA, the provisions of the WFIPA will take precedence. This ensures that the franchisee's rights under Washington law are protected.
Secondly, RCW 19.100.180, which is part of the WFIPA, may supersede certain provisions in the City Wide franchise agreement or related agreements. This particularly applies to aspects of the franchisee's relationship with City Wide concerning termination and renewal of the franchise. Additionally, court decisions may also override the franchise agreement in matters concerning the relationship between the franchisor and franchisee.
Thirdly, any arbitration or mediation involving a City Wide franchise purchased in Washington must take place in Washington, unless both parties agree to another location or the arbitrator/mediator determines otherwise. Furthermore, if litigation is not precluded by the franchise agreement, a franchisee can bring actions or proceedings related to the sale of franchises or violations of the WFIPA in Washington. Finally, any release or waiver of rights that requires a franchisee to waive compliance with the WFIPA is void unless it meets specific conditions, such as being part of a negotiated settlement after the agreement is in effect and both parties are represented by independent counsel, in accordance with RCW 19.100.220(2). Provisions that unreasonably restrict the statute of limitations for claims under the WFIPA or rights to a jury trial may also be unenforceable.