In Washington, can litigation be precluded by the Dryject franchise agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
cluding 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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Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the franchise agreement may or may not preclude litigation for franchisees in Washington. Specifically, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee in Washington can bring legal action related to the sale of franchises or violations of the Washington Franchise Investment Protection Act within the state. This implies that the franchise agreement could potentially contain provisions that would prevent a franchisee from pursuing litigation.
This clause is significant for prospective Dryject franchisees in Washington because it clarifies their legal rights and options. If the franchise agreement does not explicitly prohibit litigation, franchisees retain the right to sue Dryject under certain circumstances, particularly those involving franchise sales or violations of state law. This protection is further reinforced by the statement that provisions restricting the statute of limitations for claims under the Washington Franchise Investment Protection Act or rights to a jury trial may not be enforceable.
However, the FDD also indicates that the franchise agreement could include clauses that attempt to preclude litigation. Franchisees should carefully review the franchise agreement, with the help of an attorney, to understand whether it contains any such clauses and what their implications are. Understanding these provisions is crucial for making an informed decision about investing in a Dryject franchise in Washington, as it directly affects the franchisee's ability to seek legal recourse in case of disputes or violations.