For Crown Gold Exchange franchises in Washington, what statute may supersede the franchise agreement regarding termination and renewal?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
The state of Washington has a statute, RCW 19.100.180 which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator.
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.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, for franchises operating in Washington state, the statute RCW 19.100.180 may supersede the franchise agreement, particularly in matters of termination and renewal. This means that certain provisions of the Crown Gold Exchange franchise agreement might not be enforceable if they conflict with Washington's franchise laws. Additionally, court decisions in Washington could also take precedence over the franchise agreement in these areas.
This addendum also specifies that any arbitration involving a franchise purchased in Washington must occur within the state, or at a mutually agreed-upon location, or as determined by the arbitrator. In the event of conflicting laws, the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail.
Furthermore, any release or waiver of rights executed by a Crown Gold Exchange franchisee cannot waive rights under the Washington Franchise Investment Protection Act unless it is part of a negotiated settlement after the franchise agreement is in effect and both parties are represented by independent counsel. Provisions that unreasonably restrict the statute of limitations for claims or rights to a jury trial under the Act may not be enforceable. This ensures that franchisees in Washington retain certain legal protections regardless of what the franchise agreement might state.