What is the impact of RCW 19.100.180(1) on the Cr3 American Exteriors franchise agreement?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Provisions in the franchise agreement or related agreements stating that the franchisor may exercise its discretion on the basis of its reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 FDD, RCW 19.100.180(1) may limit or supersede provisions in the Cr3 American Exteriors franchise agreement that allow the franchisor to exercise discretion based on reasonable business judgment. This Washington state law requires parties to deal with each other in good faith.
For a prospective Cr3 American Exteriors franchisee in Washington, this means that while the franchise agreement might grant the franchisor some leeway in making business decisions, those decisions must be made in good faith. The franchisor cannot use its discretion to unfairly disadvantage the franchisee.
This provision offers some protection to the franchisee, ensuring that Cr3 American Exteriors acts fairly and honestly in its dealings, and does not make decisions based on self-interest at the franchisee's expense. Franchisees should be aware of this protection and consult with an attorney if they believe the franchisor is not acting in good faith.