In Washington state, can court decisions supersede the Kidokinetics franchise agreement regarding termination and renewal?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
WASHINGTON
ADDENDUM TO FRANCHISE AGREEMENT AND FRANCHISE DISCLOSURE 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.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchise agreement in Washington state can be superseded by court decisions regarding termination and renewal. Specifically, the Washington Addendum to the Franchise Agreement states that court decisions may take precedence over the agreement in these areas. This means that the standard terms outlined in the Kidokinetics franchise agreement may not always be the final determinant in matters of termination and renewal for franchisees operating in Washington.
This addendum also clarifies that the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail in the event of a conflict of laws. This act, along with potential court decisions, can impact the franchisee's relationship with Kidokinetics, particularly concerning termination and renewal. Therefore, franchisees in Washington should be aware that their rights and obligations may be subject to these additional legal considerations.
Furthermore, the addendum specifies that any arbitration or mediation involving a franchise purchased in Washington must occur within the state, or in a location mutually agreed upon, or as determined by the arbitrator or mediator. Additionally, franchisees have the right to bring legal action in Washington if litigation is not precluded by the franchise agreement, especially concerning the sale of franchises or violations of the Washington Franchise Investment Protection Act. This ensures that Washington franchisees have access to local legal recourse and that disputes are handled within a familiar legal framework.