What is the required action for City Wide if a conflict of laws arises in Washington?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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.
-
- 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.
-
- 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.
-
- 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).
-
- 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, if there is a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW, will take precedence. This means that if any part of the franchise agreement clashes with Washington state law, the state law will be followed instead.
This is particularly relevant for franchisees operating in Washington because it ensures that the protections afforded by the Washington Franchise Investment Protection Act are upheld. The FDD also mentions that RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning the franchisee's relationship with City Wide, including areas of termination and renewal. Court decisions may also supersede the franchise agreement.
Furthermore, the FDD states that in any arbitration or mediation involving a franchise purchased in Washington, the site will be either in Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of the arbitration or mediation. Additionally, franchisees may bring actions or proceedings arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington, if litigation is not precluded by the franchise agreement.
Finally, any release or waiver of rights in the franchise agreement that attempts to waive compliance with any provision under the Washington Franchise Investment Protection Act is void unless it meets specific conditions, such as being 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). Provisions 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.