Under what circumstances does the Washington addendum apply to a City Wide franchise agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly in Washington.
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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.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, the Washington addendum is an integral part of the franchise agreement and modifies the Franchise Disclosure Document, the franchise agreement, and all related agreements. This holds true regardless of any conflicting information within those documents.
The Washington addendum specifically applies under the following conditions: if the offer to sell a City Wide franchise is accepted in Washington, if the purchaser of the franchise is a resident of Washington, or if the franchised business that is the subject of the sale is to be located or operated, either wholly or partly, in Washington.
This means that if a prospective City Wide franchisee lives in Washington, intends to operate their franchise in Washington, or accepts the franchise offer while in Washington, the terms of the Washington addendum will take precedence over any conflicting terms in the standard franchise agreement. Franchisees should carefully review the Washington addendum to understand their rights and obligations under Washington law, as the Washington Franchise Investment Protection Act will prevail in case of conflict.