How might RCW 19.100.180 affect the Fat Shack franchise agreement in Washington?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, also known as the Washington Franchise Investment Protection Act, can override specific provisions within the franchise agreement. This means that certain terms in the agreement concerning the franchisee's relationship with Fat Shack, especially those related to termination and renewal, may be superseded by this Washington state law. Court decisions may also take precedence over the franchise agreement. Therefore, franchisees in Washington should be aware that the franchise agreement is subject to state law.
Specifically, the FDD highlights that any provision in the franchise agreement or related agreements that prohibits a Fat Shack franchisee from communicating with or complaining to regulators is inconsistent with the Franchise Disclosure Document and unlawful under RCW 19.100.180(2)(h). This ensures that franchisees can freely report concerns to regulatory bodies without fear of reprisal from Fat Shack.
Furthermore, the FDD notes that any release or waiver of rights in the franchise agreement that requires a franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act is void. The only exception is when such a waiver is executed as part of a negotiated settlement after the franchise agreement is already in effect, and both parties are represented by independent legal counsel, as per RCW 19.100.220(2). This protection extends to renewals or transfers of a franchise, ensuring franchisees do not unknowingly relinquish their rights under state law unless specific conditions are met.