In Washington, what is the required action for Deka Lash to maintain its franchise permit?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
WASHINGTON ADDENDUM TO THE AREA DEVELOPMENT AGREEMENT
If any of the terms of the Area Development Agreement are inconsistent with the terms below, the terms below control.
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.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
The 2024 Deka Lash Franchise Disclosure Document includes a Washington Addendum to the Area Development Agreement. This addendum states that if any terms within the Area Development Agreement are inconsistent with the terms outlined in the addendum, the addendum's terms will take precedence.
Specifically, the addendum highlights the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, noting that its provisions may supersede the franchise agreement, especially in areas concerning termination and renewal. The document also mentions that court decisions could potentially override the franchise agreement in these same areas.
Furthermore, the addendum addresses dispute resolution, stating that any arbitration or mediation involving a Deka Lash franchise purchased in Washington must occur within the state, or at a mutually agreed-upon location, or as determined by the arbitrator or mediator. Additionally, if litigation is not precluded by the franchise agreement, a franchisee can bring legal action related to franchise sales or violations of the Washington Franchise Investment Protection Act in Washington. The addendum also clarifies that franchisees cannot waive rights under the Washington Franchise Investment Protection Act, except in negotiated settlements with independent counsel after the agreement is in effect. Transfer fees are collectable only to the extent that they reflect Deka Lash's reasonable costs in effecting a transfer. The FDD does not specify any required actions for Deka Lash to maintain its franchise permit in Washington.