factual

Can RCW 19.100.180(1) limit or supersede the franchisor's business judgment for Dryject?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Franchisor's Business Judgement. Provisions in the franchise agreement or related agreements stating that the franchisor may exercise its discretion on the basis of its reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.

Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)

What This Means (2025 FDD)

According to Dryject's 2025 Franchise Disclosure Document, provisions in the franchise agreement that allow Dryject to use its reasonable business judgment may be limited or superseded by RCW 19.100.180(1). This Washington statute requires both Dryject and its franchisees to deal with each other in good faith.

For a prospective Dryject franchisee in Washington, this means that Dryject's decisions, even if seemingly based on reasonable business judgment, must also align with the standard of good faith as defined by Washington law. This provides a legal basis for franchisees to challenge decisions made by Dryject that, while perhaps justifiable on a purely business level, appear to be unfair or not in good faith.

This protection is particularly important because it prevents Dryject from using its business judgment to unfairly disadvantage franchisees. It ensures that the relationship between Dryject and its franchisees is governed not only by the terms of the franchise agreement but also by the overarching principle of good faith dealing, as mandated by Washington law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.