What law may limit or supersede the franchisor's business judgment for Degree Wellness?

According to Degree Wellness's 2025 Franchise Disclosure Document, RCW 19.100.180(1) may limit or supersede provisions in the franchise agreement or related agreements stating that Degree Wellness may exercise its discretion based on reasonable business judgment. This law requires the parties to deal with each other in good faith.

This means that while Degree Wellness has the right to make decisions based on its business judgment, it must do so in good faith. RCW 19.100.180(1) ensures that Degree Wellness cannot act arbitrarily or unfairly, even if the franchise agreement seems to grant them broad discretion. This provides a legal standard to protect franchisees from potentially unreasonable or self-serving decisions by the franchisor.

For a prospective Degree Wellness franchisee, this is an important protection. It means that if Degree Wellness makes a decision that appears to be detrimental to the franchisee's business, the franchisee may have legal recourse if they can demonstrate that Degree Wellness did not act in good faith. This could involve showing that the decision was not based on a genuine business reason or that Degree Wellness acted unfairly or deceptively. Franchisees should consult with an attorney to understand their rights and options under RCW 19.100.180(1) and other applicable laws.