What are the implications of the 'Franchisee Bill of Rights' for Cr3 American Exteriors franchisees in Washington?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
not be enforceable.
Item 5 of the Disclosure Document and Item 4 of the Franchise Agreement is modified to also provide: "The franchisor defers the collection of all initial fees from Virginia franchisees until the franchisor has completed all its pre-opening obligations."
Washington Addendum to the Franchise Disclosure Document, Franchise Agreement, and Related Agreements
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
-
- Conflict of Laws. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
-
- Franchisee Bill of Rights. RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise. There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor. Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
-
- Site of Arbitration, Mediation, and/or Litigation. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
-
- General Release. A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is 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). In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
-
- Statute of Limitations and Waiver of Jury Trial. Provisions contained in the franchise agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
-
- Transfer Fees. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
-
- Termination by Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, the Washington Addendum addresses specific legal protections for franchisees in Washington state. The 'Franchisee Bill of Rights,' as outlined in RCW 19.100.180, may supersede certain provisions within the franchise agreement or related documents that govern the franchisee's relationship with Cr3 American Exteriors. This includes aspects related to the termination and renewal of the franchise agreement.
This means that certain clauses in the standard Cr3 American Exteriors franchise agreement might not be enforceable in Washington if they conflict with the rights granted to franchisees under Washington law. For example, the franchisor's ability to terminate or not renew a franchise could be more limited than what is stated in the standard agreement. Franchisees in Washington should be aware of these protections, as they could provide additional security and recourse in disputes with the franchisor.
Furthermore, Washington state law dictates that in any arbitration or mediation involving a franchise purchased in Washington, the venue will be in Washington, unless otherwise agreed upon. Franchisees also have the right to bring legal action in Washington for issues arising from the sale of the franchise or violations of the Washington Franchise Investment Protection Act. Any release or waiver of rights that requires a franchisee to waive compliance with the Washington Franchise Investment Protection Act is void unless it is part of a negotiated settlement with independent legal representation. Provisions that unreasonably restrict the statute of limitations for claims or waive the right to a jury trial may also be unenforceable.
Transfer fees charged by Cr3 American Exteriors to Washington franchisees must reflect the franchisor's reasonable costs. The franchisee also retains the right to terminate the franchise agreement on any grounds permitted by state law. These stipulations collectively strengthen the position of Cr3 American Exteriors franchisees in Washington, ensuring greater compliance with state-specific regulations and offering enhanced legal safeguards.