When is a release or waiver of rights valid for a Cr3 American Exteriors franchise in Washington?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement or related documents is generally void in Washington, with a specific exception. This protection is in place to ensure franchisees are not pressured into giving up their rights under the Washington Franchise Investment Protection Act.
The exception to this rule is when the release or waiver is executed as part of a negotiated settlement after the franchise agreement is already in effect. To be valid, both parties must be represented by independent legal counsel during these negotiations, adhering to RCW 19.100.220(2). This requirement ensures that the franchisee has proper legal guidance and that the settlement is fair and informed.
Furthermore, any release or waiver connected to the renewal or transfer of a Cr3 American Exteriors franchise is also void unless it meets the same conditions outlined in RCW 19.100.220(2). This means that even during a renewal or transfer, a franchisee cannot be compelled to waive their rights unless they have independent counsel and the waiver is part of a negotiated settlement. This provision aims to protect franchisees throughout the lifecycle of their agreement with Cr3 American Exteriors.