In Washington state, if there are inconsistencies between the Engel & Volkers Franchise Disclosure Document and the Washington Franchise Investment Protection Act, which provisions prevail?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
CUMENT PURSUANT TO THE WASHINGTON FRANCHISE INVESTMENT LAW**
Notwithstanding anything to the contrary in the Franchise Disclosure Document, the following provisions shall supersede and apply to all franchises offered and sold in the State of Washington.
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- If any of the provisions in the Franchise Disclosure Document or Franchise Agreement are inconsistent with the relationship provisions of RCW 19.100.180 or other requirements of the Washington Franchise Investment Protection Act (the "Act"), the provisions of the Act will prevail over the inconsistent provisions of the Franchise Disclosure Document and Franchise Agreement with regard to any franchises sold in Washington. There may also be court decisions which may supersede the Franchise Agreement, including in the areas of termination and renewal of the franchise.
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the Washington Franchise Investment Protection Act will take precedence over any conflicting terms in the Franchise Disclosure Document or the Franchise Agreement for franchises sold in Washington state. This means that if any provision in the Engel & Volkers' documents is inconsistent with the requirements of the Act, the Act's provisions will be enforced instead. This protection is specifically outlined in the addendum to the Franchise Disclosure Document for Washington.
This ensures that Engel & Volkers franchisees in Washington are protected by the state's franchise laws, regardless of what the franchise agreement might state. The FDD also clarifies that court decisions may supersede the Franchise Agreement, especially concerning termination and renewal of the franchise.
For a prospective Engel & Volkers franchisee in Washington, this addendum offers significant legal protection. It means that certain terms in the franchise agreement that might be unfavorable or conflict with Washington law will not be enforceable. Franchisees should carefully review the Washington Franchise Investment Protection Act to understand their rights and how they are protected under state law. Engel & Volkers also specifies that any release or waiver of rights executed by a franchisee cannot include rights under the Act, further safeguarding the franchisee's legal standing.