Under what circumstance can a Floyds 99 franchisee waive rights under the Washington Franchise Investment Protection Act?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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 FDD, a franchisee in Washington can only waive their rights under the Washington Franchise Investment Protection Act (WFIPA) under very specific conditions. The waiver must be part of a negotiated settlement reached after the franchise agreement is already in effect. Furthermore, to be valid, the franchisee must be represented by independent legal counsel during these negotiations.
This provision is designed to protect franchisees from being coerced into giving up their legal rights, especially during the initial stages of the franchise relationship when they may be more vulnerable. The requirement for independent counsel ensures that the franchisee has professional advice and representation, leveling the playing field during settlement discussions.
This protection is significant because the WFIPA provides various protections to franchisees, including remedies for misrepresentation and unfair practices. By ensuring that waivers are only enforceable when made knowingly and with legal representation, the law aims to prevent franchisors from using their potential leverage to strip franchisees of these important rights. This is not unusual, as many states have franchise laws that seek to balance the power dynamic between franchisors and franchisees.