Can a Learningrx franchisee bring an action in Washington for violations of the Washington Franchise Investment Protection Act?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
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 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, a franchisee in Washington 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, if litigation is not precluded by the franchise agreement. This addendum ensures that the franchisee's rights under the Washington Franchise Investment Protection Act are protected. This means Learningrx franchisees operating in Washington have the right to seek legal recourse within the state for any violations of the state's franchise laws. This provision aims to protect franchisees from having to pursue legal action in a different, potentially less convenient or familiar jurisdiction.
Furthermore, the FDD states that any arbitration or mediation involving a franchise purchased in Washington will occur either in Washington, a mutually agreed-upon location, or as determined by the arbitrator or mediator. This ensures that disputes are resolved in a location that is accessible and fair to the franchisee. This is a significant benefit for franchisees as it reduces the potential burden of traveling to a distant location for dispute resolution.
Additionally, a release or waiver of rights executed by a Learningrx franchisee may not include rights under the Washington Franchise Investment Protection Act unless it is part of a negotiated settlement after the agreement is in effect and both parties are represented by independent counsel. Provisions that 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. This protects the franchisee from unknowingly or unintentionally giving up their legal rights under the Washington Franchise Investment Protection Act.