What specific rights under the Washington Franchise Investment Protection Act cannot be waived by an Itan franchisee?
Itan 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.
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.
As a result, any provisions contained in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a franchisee in Washington cannot waive their rights under the Washington Franchise Investment Protection Act (WFIPA). However, there is an exception: a franchisee can execute a waiver if it's part of a negotiated settlement, the franchise agreement is already in effect, and the franchisee is represented by independent legal counsel.
The FDD specifies that provisions that unreasonably restrict or limit the statute of limitations for claims under the WFIPA are not enforceable. Similarly, any restrictions on rights or remedies under the Act, such as the right to a jury trial, are also unenforceable. This ensures that franchisees retain fundamental protections under the law.
Furthermore, the document states that any provisions within the franchise agreement that conflict with the limitations of non-competition covenants are void and unenforceable in Washington. Specifically, non-competition covenants against an employee of a franchisee are void if the employee's annualized earnings are $100,000 or less (this amount is subject to annual inflation adjustments). For independent contractors of a franchisee, non-competition covenants are void if their annualized earnings are $250,000 or less (also subject to annual inflation adjustments).