Under what conditions can an Itan franchisee's release or waiver of rights include rights under the Washington Franchise Investment Protection Act?
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.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a franchisee's release or waiver of rights can include rights under the Washington Franchise Investment Protection Act only under specific conditions. This is to protect franchisees in Washington from unknowingly giving up their legal rights under the Act.
Specifically, such a release or waiver is permissible only when it is executed as part of a negotiated settlement. This settlement must occur after the franchise agreement is already in effect, indicating that the franchisee has had some experience with the franchise and understands their rights.
Furthermore, for the release or waiver to be valid, both Itan and the franchisee must be represented by independent legal counsel. This ensures that the franchisee has received proper legal advice and understands the implications of waiving their rights under the Washington Franchise Investment Protection Act. Provisions that unreasonably restrict the statute of limitations or rights to a jury trial may not be enforceable.