In Washington, can a Crisp & Green franchisee waive rights under the Washington Franchise Investment Protection Act?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
termination and renewal of yourfranchise.
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 thetimeofarbitrationormediation. Inaddition,iflitigationisnotprecludedbythe Franchise Agreement or Area Development Agreement, a franchiseemay bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment ProtectionAct, in Washington.
A release or waiver of rights executed by a franchisee may not include rights under the WashingtonFranchise InvestmentProtectionActor anyruleororderthereunder exceptwhen executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are representedbyindependent counsel. Provisionssuchasthosewhichunreasonably restrict orlimit the statute oflimitations period for claims underthe Act, orrights orremedies underthe Actsuch as a right to a jury trial, may not be enforceable.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee in Washington may not waive their rights under the Washington Franchise Investment Protection Act, except under specific circumstances. A waiver is permissible only if it is executed as part of a negotiated settlement after the franchise agreement is already in effect and both Crisp & Green and the franchisee are represented by independent legal counsel. This protection ensures that franchisees are not pressured into relinquishing their rights without proper advice and due consideration.
This provision also clarifies that certain contractual terms that might unreasonably restrict or limit the statute of limitations for claims under the Act, or limit rights or remedies such as the right to a jury trial, may not be enforceable. This means that Crisp & Green cannot enforce terms that unduly hinder a franchisee's ability to pursue legal recourse under the Washington Franchise Investment Protection Act.
Furthermore, the FDD states that any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under any applicable state franchise law, including claims of fraud. This ensures that franchisees cannot inadvertently waive their rights at the outset of the agreement. This protection is reinforced by the explicit statement that this provision supersedes any other conflicting term in any document related to the franchise agreement.
These stipulations are included in an addendum specific to Washington, indicating that these protections are designed to comply with Washington state laws and regulations. The addendum emphasizes that if there is a conflict of laws, the provisions of the Washington Franchise Investment Protection Act will take precedence, further solidifying the protections afforded to Crisp & Green franchisees in Washington.