When is a release or waiver of rights valid for Eos Worldwide franchisees in Washington?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
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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).
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, a release or waiver of rights within the Franchise Agreement or related documents is generally void in Washington, as it pertains to compliance with the Washington Franchise Investment Protection Act. However, there are specific conditions under which such a release or waiver can be considered valid.
Specifically, a release or waiver is valid only if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. Furthermore, for the release or waiver to be valid, both Eos Worldwide and the franchisee must be represented by independent legal counsel during these negotiations. This provision is in accordance with RCW 19.100.220(2), a section of the Revised Code of Washington.
Additionally, any release or waiver connected to the renewal or transfer of a franchise is also considered void unless it meets the same conditions outlined in RCW 19.100.220(2). This means that for a release or waiver related to a renewal or transfer to be valid, it must be part of a negotiated settlement, occur after the agreement is in effect, and involve both parties being represented by independent counsel. This ensures that franchisees are not pressured into surrendering their rights without proper legal advice and representation.