For an Embassy Suites franchise in Washington, what limitations exist regarding the enforceability of provisions that restrict the statute of limitations period or rights under the Washington Franchise Investment Protection Act?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Subsection 17.1 is amended to provide that provisions which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
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, you 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 page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, there are specific stipulations regarding the enforceability of certain provisions for franchises operating in Washington state. Provisions that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or that limit rights or remedies under the Act, such as the right to a jury trial, may not be enforceable. This means that Embassy Suites franchisees in Washington retain certain legal rights and protections under state law, regardless of what the franchise agreement might otherwise state.
This protection extends to releases or waivers of rights executed by a franchisee. Such waivers will not include rights under the Washington Franchise Investment Protection Act unless they are executed pursuant to a negotiated settlement after the franchise agreement is already in effect, and only if both parties are represented by independent legal counsel. This ensures that franchisees cannot unknowingly or under pressure relinquish their rights under the Act.
Furthermore, in any arbitration or mediation involving an Embassy Suites franchise purchased in Washington, the venue must be either in Washington state or a location mutually agreed upon by both parties at the time of the arbitration or mediation, or as determined by the arbitrator or mediator. Additionally, 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. These stipulations ensure that Washington franchisees have access to local legal recourse and are not forced to resolve disputes in distant or inconvenient locations.