In Washington, what law prevails in the event of a conflict of laws regarding a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
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, chapter 19.100 RCW, will prevail if there is a conflict of laws. This means that if any part of the franchise agreement clashes with Washington state law regarding franchise investments, the state law takes precedence.
This protection extends to the Franchisee Bill of Rights outlined in RCW 19.100.180, which may override specific terms in the franchise agreement, especially concerning termination and renewal. Franchisees should be aware that court decisions can also supersede the franchise agreement, further emphasizing the importance of understanding local laws.
For City Wide franchisees in Washington, any arbitration or mediation must occur within the state unless both parties agree otherwise or the arbitrator/mediator decides on a different location. Franchisees can also initiate legal proceedings in Washington for issues related to the sale of franchises or violations of the Washington Franchise Investment Protection Act, providing a local legal avenue for dispute resolution.