Can a Cool Binz franchisee in Washington waive rights under the Washington Franchise Investment Protection Act?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Accordingly, Items 17(c) and Item 17(m) of the FDD, and required by Sections 10.B.8 and 11.C of the Franchise Agreement, does not apply to claims arising under the Franchise Investment Protection Act, chapter 19.100 RCW, or any rules or order adopted thereunder, in accordance with RCW 19.100.220(2).
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee in Washington cannot waive their rights under the Washington Franchise Investment Protection Act, except under specific circumstances.
The FDD stipulates that a release or waiver of rights executed by a Cool Binz franchisee cannot include rights under the Washington Franchise Investment Protection Act or any rule or order related to it. However, there is an exception: such a waiver is permissible if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. Furthermore, for this type of waiver to be valid, both Cool Binz and the franchisee must be represented by independent legal counsel.
This provision protects Cool Binz franchisees in Washington by ensuring they do not unknowingly or unfairly relinquish their legal rights under the state's franchise laws. The exception allows for flexibility in resolving disputes, but only when both parties have the benefit of legal advice to ensure a fair and informed settlement. This is more protective than some states, which may allow waivers more freely.