In the event of a conflict between the Washington Franchise Investment Protection Act and the law chosen in the Fitstop Franchise Agreement or Area Development Agreement, which law prevails?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
hising Act or the laws of Virginia, that provision may not be enforceable.
The provision of this Additional Disclosure shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Virginia Retail Franchising Act are met independently without reference to these Additional Disclosures.
FOR THE STATE OF WASHINGTON
Item 17 of the Disclosure Document is supplemented by the following:
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- RCW § 19.100.180 and court decisions may supersede the Franchise Agreement or Area Development Agreement in your relationship with us, including in the areas of termination and renewal of your Franchise Agreement or Area Development Agreement.
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- In the event of a conflict between the Washington Franchise Investment Protection Act and the law chosen in the Franchise Agreement or Area Development Agreement, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, for franchisees in Washington state, the Washington Franchise Investment Protection Act will prevail if there is a conflict with the law chosen in the Franchise Agreement or Area Development Agreement. Specifically, the provisions of Chapter 19.100 RCW will take precedence. This ensures that Fitstop franchisees in Washington are protected by their state's franchise laws, regardless of what the franchise agreement might otherwise stipulate.
This protection extends to specific areas of the franchise agreement, including termination and renewal. RCW § 19.100.180 and relevant court decisions may supersede the Franchise Agreement or Area Development Agreement in these areas, further reinforcing the importance of Washington state law in governing the relationship between Fitstop and its Washington franchisees. This means that certain terms in the franchise agreement that might be unfavorable to the franchisee could be overridden by the state's franchise laws.
Additionally, in any arbitration involving a Fitstop franchise purchased in Washington, the arbitration site must be in Washington or a location mutually agreed upon at the time of arbitration, or as determined by the arbitrator. In the event of a conflict of state laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail. This ensures that Washington franchisees have the benefit of their local laws and legal procedures, even in dispute resolution processes.