Under what conditions will a release or waiver of rights executed by a Fitstop franchisee in Washington NOT include rights under the Washington Franchise Investment Protection Act?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a release or waiver of rights executed by a Fitstop franchisee in Washington will not include rights under the Washington Franchise Investment Protection Act unless specific conditions are met.
Specifically, for the release or waiver to be effective regarding rights under the Washington Franchise Investment Protection Act, it must be executed pursuant to a negotiated settlement. This settlement must occur after the franchise agreement is already in effect, indicating that the parties have an established business relationship.
Furthermore, both Fitstop and the franchisee must be represented by independent legal counsel during the negotiation and execution of the settlement. This requirement ensures that the franchisee is fully aware of their rights and the implications of waiving them, providing a layer of protection under the Washington Franchise Investment Protection Act. Without these conditions, any release or waiver would not impact the franchisee's rights under the Act.