For a Healthsource Chiropractic franchise in Washington, what happens if the franchise agreement and the Washington Franchise Investment Protection Act conflict?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the Washington Franchise Investment Protection Act will take precedence if there are conflicting laws. Specifically, the provisions outlined in Chapter 19.100 RCW of the Act will prevail over the franchise agreement.
RCW 19.100.180 may also supersede the franchise agreement regarding the termination and renewal of the franchise. Court decisions may also supersede the franchise agreement in matters of termination and renewal.
For any arbitration or mediation involving a Healthsource Chiropractic franchise purchased in Washington, the location will be in Washington State, a mutually agreed-upon location, or as determined by the arbitrator or mediator. Franchisees can also bring legal action in Washington if litigation isn't precluded by the franchise agreement, especially for issues related to the sale of franchises or violations of the Washington Franchise Investment Protection Act. Additionally, franchisees cannot waive their rights under the Washington Franchise Investment Protection Act unless it's part of a negotiated settlement with independent legal representation after the franchise agreement is already in effect. Provisions that unreasonably limit the statute of limitations or rights, such as the right to a jury trial, may not be enforceable.
Transfer fees are collectable only to the extent that they reflect Healthsource Chiropractic's reasonable estimated or actual costs in effecting a transfer.