Are there any restrictions on limiting the statute of limitations period for claims under the Washington Franchise Investment Protection Act for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
chise 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 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, there are restrictions regarding limiting the statute of limitations period for claims under the Washington Franchise Investment Protection Act. Specifically, provisions that unreasonably restrict or limit the statute of limitations period for claims under the Act may not be enforceable. This means that Kidokinetics cannot enforce terms in the franchise agreement that unduly shorten the time a franchisee has to bring a claim under Washington's franchise law.
This protection ensures that franchisees have a fair opportunity to pursue legal claims related to their franchise investment. It prevents Kidokinetics from using contractual terms to shield itself from liability by limiting the time frame in which a franchisee can sue. The FDD also states that 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.
For a prospective Kidokinetics franchisee in Washington, this means that certain rights under the Washington Franchise Investment Protection Act cannot be waived, especially at the outset of the franchise relationship. Any settlement that includes waiving these rights must be negotiated after the franchise agreement is already in effect, and the franchisee must be represented by independent legal counsel. This provision aims to protect franchisees from unknowingly or unfairly giving up their legal rights.
In addition, the FDD states that 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.