How might RCW 19.100.180 affect the Eos Worldwide franchise agreement in Washington?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
nd/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
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- Conflict of Laws. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
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- Franchisee Bill of Rights. RCW 19.100.180 may supersede provisions in the Franchise Agreement or related agreements concerning your relationship with the franchisor, including 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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- General Release. A release or waiver of rights in the Franchise Agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2). In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
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Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, RCW 19.100.180, also known as the Franchisee Bill of Rights, may supersede certain provisions in the franchise agreement and related agreements for franchisees in Washington. This primarily concerns the franchisee's relationship with Eos Worldwide, particularly in areas of franchise termination and renewal. This means that certain terms in the franchise agreement that conflict with the rights provided under RCW 19.100.180 may not be enforceable in Washington.
In the event of conflicting laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW, will take precedence. This ensures that the protections afforded to franchisees under Washington law are upheld. Additionally, any provision in the Franchise Agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).
Furthermore, the FDD stipulates that releases or waivers of rights that require a franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act are void. The only exception is when such waivers are executed as part of a negotiated settlement after the franchise agreement is already in effect, and both parties are represented by independent counsel, in accordance with RCW 19.100.220(2). This protection extends to releases or waivers connected with franchise renewals or transfers, ensuring franchisees are not pressured into surrendering their legal rights without proper representation and due process.
Finally, provisions in the franchise agreement that unreasonably restrict the statute of limitations 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 ensures that franchisees retain their legal recourse and are not unfairly limited in their ability to pursue claims under Washington law.