What is the significance of RCW 19.100.220(2) regarding releases or waivers for City Wide franchisees?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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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).
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, RCW 19.100.220(2) of the Washington Franchise Investment Protection Act addresses the enforceability of releases or waivers of rights by franchisees. Specifically, any release or waiver within the franchise agreement or related documents that attempts to waive compliance with the Act, its rules, or orders is considered void.
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 situation, both parties, City Wide and the franchisee, must be represented by independent legal counsel. This provision aims to protect franchisees from unknowingly or unfairly relinquishing their rights under the Washington Franchise Investment Protection Act.
Furthermore, any release or waiver executed during the renewal or transfer of a City Wide franchise is likely to be void, except under the specific conditions outlined in RCW 19.100.220(2). This means that City Wide franchisees in Washington cannot be compelled to sign away their rights under the Act as a condition of renewing or transferring their franchise, unless the conditions of a negotiated settlement with independent counsel are met.