What is the effect of RCW 19.100.180 on the Cr3 American Exteriors franchise agreement?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
sfer Fees**. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
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- Termination by Franchisee. The franchisee may terminate the franchise agreement under any grounds permitted under state law.
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- Certain Buy-Back Provisions. Provisions in franchise agreements or related agreements that permit the franchisor to repurchase the franchisee's business for any reason during the term of the franchise agreement without the franchisee's consent are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause.
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- Fair and Reasonable Pricing. Any provision in the franchise agreement or related agreements that requires the franchisee to purchase or rent any product or service for more than a fair and reasonable price is unlawful under RCW 19.100.180(2)(d).
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- Waiver of Exemplary & Punitive Damages. RCW 19.100.190 permits franchisees to seek treble damages under certain circumstances. Accordingly, provisions contained in the franchise agreement or elsewhere requiring franchisees to waive exemplary, punitive, or similar damages are void, except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
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- Franchisor's Business Judgement.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, several provisions within the franchise agreement are directly affected by Washington state law RCW 19.100.180. Specifically, provisions allowing Cr3 American Exteriors to repurchase a franchisee's business during the term without the franchisee's consent are unlawful unless the termination is for good cause, as stated in RCW 19.100.180(2)(j). This protects franchisees from arbitrary buy-backs by the franchisor.
Additionally, any clause requiring a franchisee to purchase or rent products or services at prices exceeding fair market value is unlawful under RCW 19.100.180(2)(d). This ensures that Cr3 American Exteriors cannot force franchisees into overpriced supply agreements. Furthermore, provisions stating that Cr3 American Exteriors may exercise discretion based on reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which mandates that both parties deal with each other in good faith. This prevents the franchisor from using its business judgment to unfairly disadvantage the franchisee.
Finally, any clause requiring the franchisee to indemnify Cr3 American Exteriors is modified so that the franchisee is not obligated to cover losses or liabilities resulting from the franchisor's negligence, willful misconduct, strict liability, or fraud. These stipulations collectively ensure that the Cr3 American Exteriors franchise agreement adheres to Washington state law, providing franchisees with certain protections against potentially unfair or overreaching franchisor actions.