If the jurisdictional requirements of the Washington Franchise Investment Protection Act are not met, does signing the Engel & Volkers Washington Amendment subject the parties to the provisions of the Act?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
This Amendment pertains to franchises sold in the State of Washington that are subject to the Washington Franchise Investment Protection Act (the "Act") and is for the purpose of complying with Washington statutes and regulations. Signing this Amendment where the jurisdictional requirements of the Act are not met does not subject the parties to the provisions of the Act. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended as follows:
Franchisor and Franchisee hereby agree that the Franchise Agreement dated
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, signing the Washington Amendment does not subject the parties to the provisions of the Washington Franchise Investment Protection Act if the jurisdictional requirements of the Act are not met. This is explicitly stated within the amendment itself. This clause is included to ensure compliance with Washington statutes and regulations while also clarifying the amendment's applicability.
This provision protects both Engel & Volkers and the franchisee. It ensures that the franchisee is not inadvertently subjected to legal requirements that don't apply to their specific situation. It also protects Engel & Volkers from potential liability or disputes arising from the misapplication of the Act.
Many franchise agreements include similar clauses to address the complexities of multi-state franchise regulations. Franchise laws vary significantly from state to state, and these types of provisions help to clarify which laws apply under specific circumstances. Prospective Engel & Volkers franchisees should carefully review the Washington Amendment and understand the conditions under which the Washington Franchise Investment Protection Act would apply or not apply to their franchise agreement.