What is the requirement for a Washington resident Devon Creek franchisee to release rights under the Washington Franchise Investment Protection Act?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
hold or have at any time heretofore owned or held against the
Franchisor Releasees (collectively, the "Franchisee Released Claims").
[Washington Residents]: A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the
19.100.180(g); RCW 19.100.220. Executed as of __________________, 20___.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, a release or waiver of rights executed by a franchisee in Washington State will not include rights under the Washington Franchise Investment Protection Act unless specific conditions are met.
The release must be part of a negotiated settlement that occurs after the franchise agreement is already in effect. This means the franchisee cannot waive these rights at the initial signing of the agreement.
Additionally, for the release to be valid, the franchisee must be represented by independent legal counsel during the negotiation of the settlement. This ensures the franchisee has professional advice and is making an informed decision to waive their rights under the Act. These stipulations are in accordance with Washington state law, specifically RCW 19.100.180(g) and RCW 19.100.220.