factual

For a Floyds 99 franchise in Washington, what is the effect of the provision that supersedes any other term of any document executed in connection with the franchise?

Floyds_99 Franchise · 2025 FDD

Answer 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.

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.

RIDER TO THE FLOYD'S 99 FRANCHISING, LLC FRANCHISE AGREEMENT, DEVELOPMENT AGREEMENT AND RELATED AGREEMENTS FOR THE STATE OF WASHINGTON

In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.

RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.

In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.

A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder 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 — RECEIPT (FDD pages 58–229)

What This Means (2025 FDD)

According to the 2025 Floyds 99 Franchise Disclosure Document, for franchisees in Washington, any statement, questionnaire, or acknowledgment signed in connection with starting the franchise cannot waive claims under state franchise law, including fraud, or disclaim reliance on franchisor statements. This rule overrides any conflicting terms in any document related to the franchise agreement.

This means that even if a Floyds 99 franchisee signs a document that seems to waive their rights or disclaim reliance on information provided by Floyds 99, those waivers or disclaimers will not be enforceable under Washington law. This protects franchisees from inadvertently giving up their legal rights during the initial stages of the franchise relationship.

Additionally, Washington law prohibits Floyds 99 from restricting a franchisee's ability to solicit or hire employees from other Floyds 99 franchisees or from Floyds 99 itself. Any provisions in the franchise agreement that attempt to impose such restrictions are void and unenforceable in Washington. The Washington Franchise Investment Protection Act and potential court decisions may also supersede the franchise agreement, especially concerning termination and renewal. Arbitration or mediation involving a Washington franchise must occur in Washington or a mutually agreed location. Franchisees retain the right to bring actions related to franchise sales or violations of the Washington Franchise Investment Protection Act in Washington courts if litigation isn't precluded by the franchise agreement. A franchisee's release or waiver of rights is invalid if it includes rights under the Washington Franchise Investment Protection Act, unless it's part of a negotiated settlement with independent counsel after the agreement is in effect.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.