What is the effect of the Washington Franchise Investment Protection Act on the Face Foundrie franchise agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
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.
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.
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.
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).
STATUTE OF LIMITATIONS AND WAIVER OF JURY TRIAL. Provisions contained in the franchise agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
TRANSFER FEES. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
TERMINATION BY FRANCHISEE. The franchisee may terminate the franchise agreement under any grounds permitted under state law.
CERTAIN BUY-BACK PROVISIONS. Provisions in franchise agreements or related agreements that permit the franchisor to repurchase the franchisee's business for any reason during the term of the franchise agreement without the franchisee's consent are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause.
FAIR AND REASONABLE PRICING.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Washington Franchise Investment Protection Act significantly impacts the franchise agreement for franchisees in Washington state. In the event of any conflict between the franchise agreement and the Act, the provisions of the Washington Franchise Investment Protection Act will take precedence.
The Act includes a 'Franchisee Bill of Rights' that may override specific terms in the Face Foundrie franchise agreement, particularly concerning termination and renewal. Court decisions may also supersede the franchise agreement. Any arbitration or mediation involving a Face Foundrie franchise purchased in Washington must occur in Washington, unless otherwise agreed upon. Franchisees in Washington also have the right to bring legal action in Washington for issues related to the sale of the franchise or violations of the Washington Franchise Investment Protection Act.
Any release or waiver of rights that requires a Face Foundrie franchisee to waive compliance with the Washington Franchise Investment Protection Act is void unless it meets specific conditions, such as being part of a negotiated settlement with independent legal representation after the agreement is in effect. Similarly, waivers related to franchise renewal or transfer are also void unless they comply with specific provisions of the Act. Provisions in the franchise agreement that unreasonably limit the statute of limitations for claims under the Act or waive rights like a jury trial may not be enforceable.
Finally, Face Foundrie can only collect transfer fees to the extent that they reflect the company's reasonable costs in facilitating the transfer. The FDD also includes an addendum specifically for Washington, which modifies the Franchise Disclosure Document, the franchise agreement, and all related agreements for franchisees in Washington. This addendum applies if the franchise offer is accepted in Washington, the purchaser is a Washington resident, or the franchised business will operate in Washington.