What is the effect of the Washington Franchise Investment Protection Act on Dryject franchise agreements?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
e Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
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- Conflict of Laws. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
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- Franchisee Bill of Rights. RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise. There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor. Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
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- Site of Arbitration, Mediation, and/or Litigation. 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.
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- General Release. A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2). In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
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Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the Washington Franchise Investment Protection Act has several important effects on franchise agreements for franchises located or sold in Washington.
First, in the event of any conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW, will take precedence over conflicting terms in the franchise agreement. Additionally, RCW 19.100.180, known as the Franchisee Bill of Rights, may override specific provisions in the franchise agreement or related documents, especially concerning the franchisee's relationship with Dryject regarding termination and renewal. Court decisions may also supersede the franchise agreement.
Second, any arbitration or mediation involving a Dryject franchise purchased in Washington must occur in Washington, unless both parties agree to another location or the arbitrator/mediator determines otherwise. Franchisees can also bring legal actions related to franchise sales or violations of the Washington Franchise Investment Protection Act in Washington, assuming the franchise agreement does not preclude litigation.
Finally, any release or waiver of rights that requires a franchisee to waive compliance with the Washington Franchise Investment Protection Act is void unless it meets specific conditions. These conditions include being part of a negotiated settlement after the franchise agreement is in effect and having both parties represented by independent counsel, as per RCW 19.100.220(2). Similarly, waivers related to franchise renewal or transfer are also void unless they meet the same conditions. Provisions that unreasonably restrict the statute of limitations for claims or rights to remedies like a jury trial under the Act may not be enforceable. Furthermore, questionnaires or acknowledgments signed by the franchisee cannot waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Dryject or its representatives. Franchise agreements cannot prohibit franchisees from communicating with regulators, as this is unlawful under RCW 19.100.180(2)(h).