In the event of a conflict of law, which provisions prevail for an Engel & Volkers franchise in Washington?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of a conflict of law, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
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 page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail in the event of a conflict of law. This means that if there is any disagreement or inconsistency between the franchise agreement and Washington state law, the state law will take precedence. This protection is specific to franchisees operating in Washington.
For a prospective Engel & Volkers franchisee in Washington, this is a beneficial provision. It ensures that the franchisee's rights are protected under Washington law, even if the franchise agreement contains conflicting terms. This can be particularly important in areas such as termination rights, renewal options, and restrictions on competition. Franchisees should familiarize themselves with the Washington Franchise Investment Protection Act to understand their rights and obligations.
Additionally, the FDD specifies that for any arbitration or mediation involving a franchise purchased in Washington, the location will be either in Washington state or a place mutually agreed upon. Franchisees also have the right to bring legal action in Washington if litigation isn't precluded by the franchise agreement, especially concerning the sale of franchises or violations of the Washington Franchise Investment Protection Act. This further protects the franchisee by ensuring disputes can be resolved within the state, under its laws, and in a location that is convenient or agreed upon.