For Even Hotels franchises in Washington, what happens if provisions in the franchise agreement unreasonably restrict the statute of limitations period for claims under the Act?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
If any of the provisions in the franchise disclosure document or license agreement are inconsistent with the relationship provisions of RCW 19.100.180 or other requirements of the Washington Franchise Investment Protection Act, the provisions of the Act will prevail over the inconsistent provisions of the franchise disclosure document and license agreement with regard to any license sold in Washington.
Nothing in the License shall prevent the licensee from bringing an action in Washington courts to the extent that such actions are provided for under the Washington Franchise Investment Protection Act.
A release or waiver of rights executed by a Franchisee will not include rights under the Washington Franchise Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the license agreement is in effect and where the parties are represented by independent counsel.
Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, and rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, for franchises in Washington state, provisions in the franchise agreement that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act may not be enforceable. This also applies to rights or remedies under the Act, such as the right to a jury trial. This protection is designed to ensure that franchisees are not unfairly limited in their ability to pursue legal claims related to their franchise agreement.
This means that if the Even Hotels franchise agreement includes terms that attempt to shorten the time a franchisee has to file a lawsuit under the Washington Franchise Investment Protection Act, those terms may be deemed invalid by a Washington court. The franchisee would then be entitled to the full statutory period allowed under Washington law to bring their claim. The purpose is to prevent franchisors from using the franchise agreement to unduly limit franchisees' legal rights.
For a prospective Even Hotels franchisee in Washington, this addendum provides an additional layer of protection. It ensures that the franchisee retains their rights under the Washington Franchise Investment Protection Act, regardless of any conflicting language in the franchise agreement. Franchisees should consult with an attorney to fully understand their rights and the implications of this addendum.