What restrictions or limitations on statute of limitations periods or rights under the Act may not be enforceable for a Cool Binz franchise?
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.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, certain provisions within the franchise agreement that place unreasonable restrictions or limitations on the statute of limitations for claims made under the Washington Franchise Investment Protection Act, or that limit rights or remedies available under the Act, may not be enforceable. This includes limitations on the right to a jury trial.
Specifically, in Washington state, the franchise agreement cannot unduly restrict the time a franchisee has to bring a claim under the Washington Franchise Investment Protection Act. Similarly, any attempt to waive rights or remedies granted by the Act, such as the right to a jury trial, may be deemed unenforceable. This protection ensures that franchisees in Washington have adequate legal recourse and are not unfairly disadvantaged by overly restrictive contract terms.
This provision is particularly relevant for prospective Cool Binz franchisees in Washington, as it clarifies that certain clauses that might appear to limit their legal rights may not be valid. Franchisees should consult with an attorney to understand their rights under the Washington Franchise Investment Protection Act and to ensure that the franchise agreement complies with these protections. This helps to level the playing field and protect franchisees from potentially overreaching franchisor practices.