exception

Under what circumstances can a Craters & Freighters franchisee in Washington waive rights under the Washington Franchise Investment Protection Act?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

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 Craters & Freighters' 2025 Franchise Disclosure Document, a franchisee in Washington can only waive their rights under the Washington Franchise Investment Protection Act under very specific circumstances. A waiver is only permissible if it is part of a negotiated settlement reached after the franchise agreement is already in effect. Furthermore, both Craters & Freighters and the franchisee must be represented by independent legal counsel during these negotiations.

This provision aims to protect franchisees from being coerced into waiving their rights, especially during the initial stages of the franchise relationship when they may be more vulnerable. By requiring a negotiated settlement with independent counsel, the agreement ensures that any waiver is made knowingly and voluntarily. This is a stronger protection than in some states, where waivers might be allowed more freely.

Additionally, the FDD states that provisions that 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. This further safeguards the franchisee's ability to pursue legal action under the Washington Franchise Investment Protection Act if necessary. This ensures that franchisees retain their fundamental legal rights, preventing Craters & Freighters from imposing overly restrictive conditions that could hinder a franchisee's ability to seek justice.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.