In the event of a conflict of laws regarding a Deka Lash franchise in Washington, which provisions prevail?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 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 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the Washington Addendum to both the Disclosure Document and the Franchise Agreement specifies that in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will take precedence. This means that if any part of the standard Deka Lash franchise agreement clashes with Washington state law, the state law will govern the franchise relationship in Washington. This protection extends to the Area Development Agreement as well.
This is a significant protection for franchisees in Washington because it ensures that their rights under state law are upheld, even if the franchise agreement attempts to limit those rights. The Washington Franchise Investment Protection Act covers various aspects of the franchise relationship, including termination and renewal, which are specifically mentioned as areas where RCW 19.100.180 may supersede the franchise agreement. Additionally, court decisions may also override the franchise agreement in matters of termination and renewal.
Furthermore, the addendum addresses dispute resolution, stating that any arbitration or mediation involving a Deka Lash franchise purchased in Washington must take place in Washington, unless otherwise agreed upon. Franchisees may also bring legal action in Washington for issues related to the sale of franchises or violations of the Washington Franchise Investment Protection Act, provided litigation isn't precluded by the franchise agreement. This ensures that Washington franchisees have access to local legal remedies and are not forced to resolve disputes in a distant jurisdiction.
Finally, the addendum protects franchisees from unknowingly waiving their rights under the Washington Franchise Investment Protection Act. Any release or waiver of rights must be executed pursuant to a negotiated settlement after the franchise agreement is in effect, and the franchisee must be represented by independent counsel. Provisions that unreasonably restrict the statute of limitations or rights to a jury trial may not be enforceable, further safeguarding the franchisee's legal standing.