Can a Craters & Freighters franchisee in Washington bring an action related to the sale of franchises in Washington?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder 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 limitations period for claims under the Act such as a right to a jury trial, may not be enforceable.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee in Washington may bring an action or proceeding related to the sale of franchises or a violation of the Washington Franchise Investment Protection Act in Washington, if litigation is not precluded by the franchise agreement. This means that Craters & Freighters franchisees in Washington have the right to sue Craters & Freighters regarding franchise sales or violations of the state's franchise law.
This protection extends to ensuring that any release or waiver of rights executed by a franchisee does not include rights under the Washington Franchise Investment Protection Act, unless it is part of a negotiated settlement with independent legal representation after the franchise agreement is already in effect. This safeguards the franchisee's rights under the Act, preventing them from being unknowingly waived at the outset of the franchise relationship.
Furthermore, provisions that unreasonably restrict or limit the statute of limitations period for claims under the Act, such as the right to a jury trial, may not be enforceable. This ensures that Craters & Freighters franchisees in Washington have a fair opportunity to pursue legal claims without undue restrictions on their legal rights or the time they have to file a claim.