What is the process for dispute resolution for Face Foundrie franchisees?
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. Any provision in the franchise agreement or related agreements that requires the franchisee to purchase or rent any product or service for more than a fair and reasonable price is unlawful under RCW 19.100.180(2)(d).
WAIVER OF EXEMPLARY & PUNITIVE DAMAGES. RCW 19.100.190 permits franchisees to seek treble damages under certain circumstances.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Face Foundrie provides information regarding dispute resolution, particularly through addenda required by certain states. For instance, in Washington, the FDD states that the site of arbitration or mediation involving a franchise purchased in Washington 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. Moreover, 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.
Additionally, the FDD includes stipulations regarding releases and waivers. In Washington, a release or waiver of rights in the franchise agreement is void unless 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). This also applies to releases or waivers executed in connection with a renewal or transfer of a franchise, with the same conditions. The FDD also notes that provisions in the franchise agreement 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.
For franchisees in Minnesota, the FDD states that any release signed as a condition of renewal or transfer will not apply to any claims they may have under the Minnesota Franchise Law. This indicates that Face Foundrie franchisees in Minnesota retain their rights under the state's franchise law, even when signing releases for renewal or transfer.
In Maryland, the Franchise Agreement provides for termination upon your bankruptcy. This provision might not be enforceable under federal bankruptcy law (11. U.S.C. Sections 101 et seq.), but Face Foundrie will enforce it to the extent enforceable. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of your franchise. To the extent that any provisions of the Franchise Agreement and/or Franchisee Disclosure Questionnaire require you to assent to any release, estoppel or waiver of liability as a condition to your purchasing a Face Foundrié franchise, such provisions are not intended to nor shall they act as a release, estoppel or waiver of any liability under the Maryland Franchise Registration and Disclosure Law.