Under what circumstances might a Fitstop franchisee in Washington have the right to terminate the franchise relationship?
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.
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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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Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee in Washington may have the right to terminate the franchise relationship if Fitstop fails to perform its duties or under applicable law. This right is provided under the Washington Franchise Investment Protection Act.
This provision is specific to franchises purchased in Washington and is intended to protect franchisees' rights under the Act. It means that if Fitstop does not fulfill its obligations as outlined in the franchise agreement or violates any applicable laws, the franchisee may have grounds to terminate the agreement without penalty.
It is important to note that these provisions are effective only to the extent that the jurisdictional requirements of the Washington Franchise Investment Protection Act are met independently. This means that the franchisee must still meet the legal requirements to invoke the protections of the Act, regardless of these additional disclosures. Prospective Fitstop franchisees in Washington should seek legal counsel to fully understand their rights and obligations under the Washington Franchise Investment Protection Act and how it interacts with the franchise agreement.