Under what circumstances 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.
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 can only waive their rights under the Washington Franchise Investment Protection Act under very specific conditions. The waiver must be part of a negotiated settlement that occurs after the franchise agreement is already in effect. Furthermore, to ensure fairness and protect the franchisee, both Cool Binz and the franchisee must be represented by independent legal counsel during these negotiations.
This provision is designed to prevent Cool Binz from pressuring franchisees into waiving their rights at the outset of the agreement, when the franchisee may not fully understand the implications. By requiring a negotiated settlement with independent counsel, the law aims to ensure that any waiver is made knowingly and voluntarily.
Additionally, the FDD states that provisions that unreasonably restrict or limit the statute of limitations for claims or rights under the Act, such as the right to a jury trial, may not be enforceable. This further protects the franchisee's ability to pursue legal action if necessary.