In Washington, can a Fat Shack franchisee disclaim reliance on statements made by the franchisor or their representatives?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor.
As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
Questionnaires and Acknowledgments.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, if you are a franchisee in Washington, you cannot disclaim reliance on statements made by Fat Shack or anyone acting on their behalf. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including fraud, or disclaim reliance on statements from the franchisor or their representatives. This protection is built into the franchise agreement to protect franchisees.
This provision is significant because it overrides any conflicting terms in any document related to the franchise agreement. This means that even if a document contains language suggesting you are waiving your right to rely on statements made by Fat Shack, that language is void and unenforceable in Washington. This ensures that franchisees can hold Fat Shack accountable for representations made during the franchise sales process.
This type of protection is not uniform across all states, as franchise laws vary considerably. Some states may allow disclaimers of reliance, while others may have stricter regulations to protect franchisees. Therefore, it is essential for prospective franchisees to understand the specific laws in their state and how they impact their rights and obligations under the franchise agreement.