Under what circumstances can a release or waiver of rights executed by a Crowne Plaza franchisee in Washington include rights under the Washington Franchise Protection Act?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
A release or waiver of rights executed by a Franchisee will not include rights under the Washington Franchise Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the license agreement is in effect and where the parties are represented by independent counsel.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, a release or waiver of rights executed by a franchisee in Washington will generally not include rights under the Washington Franchise Protection Act. However, there is an exception.
The exception is that a Crowne Plaza franchisee's release or waiver can include rights under the Washington Franchise Protection Act if it is executed pursuant to a negotiated settlement after the license agreement is already in effect. In addition, both parties (Crowne Plaza and the franchisee) must be represented by independent legal counsel during the negotiation and execution of the settlement.
This provision ensures that franchisees are not pressured into unknowingly waiving their rights under the Washington Franchise Investment Protection Act. The requirement for independent counsel aims to protect franchisees by ensuring they receive proper legal advice before agreeing to any release or waiver. This is particularly important in franchise agreements, where there can be a significant power imbalance between the franchisor and franchisee.