In Washington, what aspects of the Degree Wellness franchise agreement might RCW 19.100.180 supersede?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Franchisee Bill of Rights.
RCW 19.100.180 may supersede the Agreement including the areas of termination and renewal of the franchise.
There may also be court decisions which may supersede the Agreement including the areas of termination and renewal of the franchise.
- H. Certain Buy-Back Provisions.
Provisions in franchise agreements or related agreements that permit the franchisor to repurchase the franchisee's business for any reason during the term of the franchise agreement without the franchisee's consent are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause.
- I. Fair and Reasonable Pricing.
Any provision in the franchise agreement or related agreements that requires the franchisee to purchase or rent any product or service for more than a fair and reasonable price is unlawful under RCW 19.100.180(2)(d).
- K. Franchisor's Business Judgement.
Provisions in the franchise agreement or related agreements stating that the franchisor may exercise its discretion on the basis of its reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, RCW 19.100.180, also known as the Franchisee Bill of Rights, may supersede the franchise agreement in Washington, particularly concerning the termination and renewal of the franchise. This means that certain provisions in the Degree Wellness franchise agreement regarding termination and renewal might not be enforceable if they conflict with the rights granted to franchisees under Washington law.
Specifically, provisions in franchise agreements or related agreements that allow Degree Wellness to repurchase the franchisee's business for any reason during the term of the agreement without the franchisee's consent are unlawful under RCW 19.100.180(2)(j), unless the franchise is terminated for good cause. Additionally, any provision requiring a franchisee to purchase or rent any product or service for more than a fair and reasonable price is unlawful under RCW 19.100.180(2)(d). Provisions stating that Degree Wellness may exercise its discretion based on its reasonable business judgment may also be limited or superseded by RCW 19.100.180(1), which requires both parties to deal with each other in good faith.
For a prospective Degree Wellness franchisee in Washington, this means that the state law provides additional protections beyond the terms outlined in the franchise agreement. It is essential to carefully review the franchise agreement with legal counsel to understand which provisions might be superseded by Washington law and to ensure full compliance with the Franchise Investment Protection Act. This review can help the franchisee understand their rights regarding termination, renewal, fair pricing, and other critical aspects of the franchise relationship.