factual

What specific Washington law is referenced regarding franchisee rights in the Degree Wellness Washington Addendum?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.

RCW 19.100.180 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 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 the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.

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 66–257)

What This Means (2025 FDD)

According to Degree Wellness's 2025 Franchise Disclosure Document, the Washington Addendum references the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, concerning franchisee rights. Specifically, the addendum states that the provisions of this Act will prevail in the event of any conflict of laws.

Furthermore, RCW 19.100.180 may supersede the franchise agreement, particularly in areas concerning termination and renewal of the franchise. The addendum also acknowledges that court decisions may also supersede the franchise agreement in these areas. This means that certain aspects of the standard Degree Wellness franchise agreement may not be enforceable in Washington if they conflict with state law or court rulings.

The addendum also addresses dispute resolution, stating that any arbitration or mediation involving a franchise purchased in Washington must occur within the state, or in a mutually agreed-upon location, or as determined by the arbitrator or mediator. Additionally, franchisees can bring legal action in Washington for issues related to the sale of franchises or violations of the Washington Franchise Investment Protection Act, if litigation is not precluded by the franchise agreement. This ensures that Washington franchisees have access to local legal avenues for resolving disputes.

The Degree Wellness FDD also clarifies that franchisees cannot waive their rights under the Washington Franchise Investment Protection Act, except in specific circumstances such as a negotiated settlement with independent legal representation after the agreement is in effect. Provisions that unreasonably restrict the statute of limitations or rights to a jury trial may also be unenforceable. This section aims to protect franchisees from unknowingly relinquishing their legal protections under Washington law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.