Are there any limitations on transfer fees for a Dickeys Barbecue Pit franchise in Washington?
Dickeys_Barbecue_Pit Franchise · 2024 FDDAnswer from 2024 FDD Document
WASHINGTON ADDENDUM TO THE FRANCHISE AGREEMENT AND RELATED AGREEMENTS
This Addendum to the Franchise Agreement and Related Agreements by and between DICKEY'S BARBECUE RESTAURANTS, INC. ("we," "our," or "us") and ("you") is dated, 20 In recognition of the requirements by the Washington Franchise Investment Protection Act and the Rules and Regulations promulgated thereunder (the "Act"), the Franchise Agreement of DICKEY'S BARBECUE RESTAURANTS, INC. shall be modified as follows:
Article 28.1 of the Franchise Agreement is revised to read as follows:
COMPLETION OF INDEPENDENT INVESTIGATION. You, your Owner/Operator, and your Investors acknowledge and warrant that you have conducted an independent investigation of the franchised business and recognize that the business venture contemplated by this Agreement involves business risks and that its success will largely depend upon your ability, effort, and resources. Dickey's expressly disclaims making, and you acknowledge that you have not received any warranty or guarantee, express or implied, as to the potential volume, profits or success of the business venture contemplated by this Agreement.
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 us including the areas of termination and renewal of your franchise. There may also be court decisions that may supersede the Franchise Agreement in your relationship with us 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.
Source: Item 22 — CONTRACTS (FDD pages 95–96)
What This Means (2024 FDD)
According to Dickeys Barbecue Pit's 2024 Franchise Disclosure Document, the Washington Addendum modifies the franchise agreement to comply with the Washington Franchise Investment Protection Act. In the event of conflicting laws, the provisions of the Washington Franchise Investment Protection Act will take precedence.
Specifically, the addendum states that RCW 19.100.180 may supersede the Franchise Agreement in the franchisee's relationship with Dickeys Barbecue Pit, particularly concerning termination and renewal. Additionally, court decisions may also supersede the Franchise Agreement in these areas.
For any arbitration or mediation involving a franchise purchased in Washington, the venue will be in Washington State or a mutually agreed-upon location. If litigation is not precluded by the franchise agreement, a franchisee can bring an action related to the sale of franchises or violations of the Washington Franchise Investment Protection Act in Washington. While the FDD outlines a standard transfer fee of $15,000, the Washington Addendum indicates that state law may impose further limitations or regulations on such fees, potentially superseding the standard agreement.
Therefore, prospective franchisees in Washington should be aware that the Washington Franchise Investment Protection Act may provide additional protections and limitations beyond what is stated in the standard Dickeys Barbecue Pit franchise agreement.