For a Healthsource Chiropractic franchise in Washington, what is the significance of the Washington Franchise Investment Protection Act?
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 the 2025 Healthsource Chiropractic Franchise Disclosure Document, the Washington Franchise Investment Protection Act (Chapter 19.100 RCW) is highly significant for franchisees in Washington state. In the event of any conflict of laws, the provisions of this Act will take precedence over the franchise agreement. This means that certain clauses within the standard Healthsource Chiropractic franchise agreement may be superseded or deemed unenforceable if they contradict the state law.
Specifically, RCW 19.100.180 may override aspects of the franchise agreement related to termination and renewal. This ensures that Healthsource Chiropractic franchisees in Washington are afforded the protections granted by state law regarding the continuation of their franchise. Additionally, any arbitration or mediation related to a Healthsource Chiropractic franchise purchased in Washington must occur within the state, unless otherwise agreed upon, or as determined by the arbitrator or mediator. Franchisees also have the right to bring legal action in Washington for issues arising from the sale of the franchise or violations of the Washington Franchise Investment Protection Act.
Furthermore, franchisees cannot waive their rights under the Washington Franchise Investment Protection Act, except through a negotiated settlement with independent legal counsel after the franchise agreement is already in effect. Provisions that unreasonably limit the statute of limitations for claims or restrict rights such as the right to a jury trial may not be enforceable. Transfer fees charged to Healthsource Chiropractic franchisees must also reflect the franchisor's reasonable costs. These stipulations collectively ensure that the franchise agreement operates within the legal framework established by Washington state to protect franchisees.