What is the effect of court decisions on the Fat Shack franchise agreement in Washington?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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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- 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.
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- 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.
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- Termination by Franchisee.
The franchisee may terminate the franchise agreement under any grounds permitted under state law.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchise agreement provisions are subject to state law, and court decisions may supersede the franchise agreement or related agreements concerning the franchisee's relationship with Fat Shack. For Washington franchisees, specific stipulations apply to arbitration, mediation, releases, waivers, statutes of limitations, jury trials, and transfer fees.
In Washington, any arbitration or mediation must occur in Washington state or a mutually agreed-upon location. Franchisees may bring action in Washington if litigation is not precluded by the franchise agreement for issues arising from the sale of franchises or violations of the Washington Franchise Investment Protection Act. Releases or waivers that require franchisees to waive compliance with the Washington Franchise Investment Protection Act are void unless executed as part of a negotiated settlement with independent counsel after the agreement is in effect, as per RCW 19.100.220(2). This also applies to releases or waivers connected to franchise renewals or transfers, with the same exception under RCW 19.100.220(2).
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. Transfer fees are only collectable if they reflect Fat Shack's reasonable estimated or actual costs in completing a transfer. Additionally, the franchisee can terminate the franchise agreement on any grounds permitted by state law.