What is the effect of the Washington Addendum on the Fat Shack Franchise Disclosure Document?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR WASHINGTON FRANCHISEES ONLY:
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act, RCW 19.100, or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, there is a specific stipulation for Washington franchisees. This addendum states that any release or waiver of rights executed by a franchisee cannot include rights protected under the Washington Franchise Investment Protection Act (RCW 19.100) or any related rule or order.
However, this restriction has an exception. A franchisee can waive their rights under the Washington Franchise Investment Protection Act if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect. Additionally, for such a waiver to be valid, the franchisee must be represented by independent legal counsel during the negotiation of the settlement.
In practical terms, this means that Fat Shack franchisees in Washington have additional protection under state law. They cannot be forced to waive their rights under the Washington Franchise Investment Protection Act at the outset of the agreement. This protection can only be waived later if a settlement is reached with the assistance of their own lawyer, ensuring they understand the implications of the waiver.