Under what circumstances is a release or waiver of rights in the Hardees franchise agreement considered void under the Washington Franchise Investment Protection Act?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
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- General Release. A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–84)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement is generally considered void if it requires a franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act. However, there are specific exceptions to this rule.
Such a release or waiver is permissible and not considered void only when it is executed as part of a negotiated settlement after the franchise agreement is already in effect. Additionally, for the release to be valid, both Hardees and the franchisee must be represented by independent legal counsel during these negotiations. This ensures that the franchisee's rights are protected and that they are entering into the settlement with informed consent.
Furthermore, any release or waiver executed in connection with the renewal or transfer of a Hardees franchise is also generally void, unless it meets the specific conditions outlined in RCW 19.100.220(2). This statute likely contains similar requirements for independent representation and fair negotiation, though the exact details are not provided in this excerpt. Therefore, franchisees should seek legal counsel to fully understand their rights and obligations under Washington law when renewing or transferring a franchise.