Under what specific circumstances can a Crave Cookies franchisee in Washington waive rights under the Washington Franchise Investment Protection Act?
Crave_Cookies Franchise · 2025 FDDAnswer 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, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee in Washington can only waive their rights under the Washington Franchise Investment Protection Act under very specific conditions. A waiver is permissible only if it is part of a negotiated settlement reached after the franchise agreement is already in effect. Furthermore, both Crave Cookies and the franchisee must be represented by independent legal counsel during these negotiations.
This provision aims to protect franchisees from unknowingly or unfairly relinquishing their rights. The requirement for a post-agreement settlement ensures that the franchisee is aware of potential issues or disputes before agreeing to a waiver. Requiring independent counsel ensures that the franchisee receives proper legal advice and is not pressured into waiving rights without fully understanding the implications.
It is important to note that even with these conditions met, certain provisions that unreasonably restrict or limit the statute of limitations for claims, or rights to remedies such as a jury trial, may still not be enforceable. This further safeguards the franchisee's ability to pursue legal action if necessary, reinforcing the protections provided by Washington law.