In the event of a conflict of laws, which provisions prevail for a Crab N Spice franchise in Washington?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act 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 limitation period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 22 — CONTRACTS (FDD pages 50–51)
What This Means (2024 FDD)
According to the 2024 Crab N Spice Franchise Disclosure Document, specifically the Washington Addendum, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail in the event of a conflict of laws. This means that if there is a disagreement between the franchise agreement and Washington state law, the state law will be upheld.
This protection extends to rights under the Washington Franchise Investment Protection Act, ensuring that franchisees do not unknowingly waive these rights. Any release or waiver of rights is only valid if it is part of a negotiated settlement after the franchise agreement is already in effect, and both parties are represented by independent legal counsel.
Certain provisions that might restrict or limit the statute of limitations for claims, or rights to a jury trial under the Act, may not be enforceable. Additionally, transfer fees must reflect the franchisor's reasonable costs in facilitating the transfer. This addendum ensures that Washington franchisees receive the full protection of their state's franchise laws.