How might RCW § 19.100.180 and court decisions affect the Fitstop Franchise Agreement or Area Development Agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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- A release or waiver of rights executed by a franchisee will not include rights under the Washington Franchise Investment Protection Act, except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
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- Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act, such as a right to a jury trial, may not be enforceable in Washington.
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- Transfer fees are collectable to the extent that they reflect our reasonable estimated or actual costs in effecting a transfer.
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- In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually agreed upon at the time of the 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 shall prevail.
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- Franchisee may have the right to terminate the franchise relationship should the franchisor fail to perform its duties or under applicable law
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, RCW § 19.100.180 and relevant court decisions may take precedence over certain terms in the Fitstop Franchise Agreement or Area Development Agreement. This includes aspects related to the termination and renewal of the franchise agreement or area development agreement.
Specifically, if there is a conflict between the Washington Franchise Investment Protection Act (Chapter 19.100 RCW) and the law specified in the Franchise Agreement or Area Development Agreement, the provisions of the Washington Franchise Investment Protection Act will govern. Furthermore, any release or waiver of rights by a franchisee will not cover rights under the Washington Franchise Investment Protection Act unless it is part of a negotiated settlement after the agreement is in effect and both parties are represented by independent legal counsel.
Additionally, certain provisions within the Fitstop agreement that unreasonably restrict the statute of limitations for claims under the Act, or limit rights or remedies such as the right to a jury trial, may not be enforceable in Washington. Transfer fees must also reflect Fitstop's reasonable estimated or actual costs in facilitating the transfer. For any arbitration involving a franchise purchased in Washington, the arbitration site must be in Washington state or a location mutually agreed upon at the time of arbitration or as determined by the arbitrator, and the Washington Franchise Investment Protection Act will prevail in the event of conflicting state laws. Finally, a franchisee may have the right to terminate the franchise relationship if Fitstop fails to perform its duties or under applicable law.