What is the effect of the Washington Franchise Investment Protection Act on the Fat Shack franchise agreement?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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.
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- 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.
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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).
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.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, several provisions address the impact of the Washington Franchise Investment Protection Act (WFIPA) on franchise agreements within the state. In case of conflicting laws, the WFIPA, chapter 19.100 RCW, will take precedence over the franchise agreement. Additionally, RCW 19.100.180, known as the Franchisee Bill of Rights, may override specific terms in the franchise agreement or related documents that govern the relationship between Fat Shack and its franchisees, particularly concerning termination and renewal rights. Court decisions may also supersede the franchise agreement.
The FDD specifies that any release or waiver of rights that requires a franchisee to waive compliance with the WFIPA is void. However, there is an exception: such a waiver is permissible if it's part of a negotiated settlement reached after the franchise agreement is already in effect and both parties have independent legal representation. This protection extends to releases or waivers connected to franchise renewals or transfers, reinforcing the franchisee's rights under Washington law.
Furthermore, the Fat Shack franchise agreement states that provisions that unreasonably restrict the statute of limitations for claims under the WFIPA or limit rights and remedies, such as the right to a jury trial, may not be enforceable. For any arbitration or mediation involving a franchise purchased in Washington, the venue must be in Washington State or a location mutually agreed upon by both parties, or as determined by the arbitrator or mediator. If litigation is not precluded by the franchise agreement, a franchisee can bring an action in Washington if it arises from the sale of franchises or a violation of the WFIPA.