How might RCW 19.100.180 affect the Fat Shack franchise agreement?
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 Fat Shack's 2025 Franchise Disclosure Document, RCW 19.100.180, part of the Washington Franchise Investment Protection Act, places restrictions on the waivers of rights within a franchise agreement. Specifically for Washington franchisees, a release or waiver of rights cannot include rights granted under the Washington Franchise Investment Protection Act (RCW 19.100) unless it meets certain conditions.
This means that Fat Shack franchisees in Washington State cannot sign away their rights under the state's franchise law in the initial franchise agreement. Any waiver of these rights is only valid if it's part of a negotiated settlement that occurs after the franchise agreement is already in effect. Furthermore, both Fat Shack and the franchisee must be represented by independent legal counsel during these settlement negotiations.
This provision protects Washington franchisees by ensuring they don't unknowingly or under pressure surrender their legal rights at the outset of the franchise relationship. It ensures that any relinquishment of rights is a knowing and voluntary decision made with the benefit of legal advice, after the franchisee has had some experience operating the Fat Shack franchise. This type of clause is common in franchise agreements to ensure compliance with state laws designed to protect franchisees.