How does the Acknowledgment section apply to Ledgers franchisees in Washington?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
This Acknowledgment is inapplicable to Washington franchisees and the Washington Addendum applies for Washington franchisees.
As a result, any provision contained in the franchise agreement or elsewhere that conflicts with these limitations is void and unenforceable in Washington.
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- Questionnaires and Acknowledgments. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Prohibitions on Communicating with Regulators. Any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, the standard Acknowledgment section within the franchise agreement does not apply to franchisees in Washington state. Instead, a specific Washington Addendum is included, which takes precedence over the general Acknowledgment. This means that certain provisions in the standard franchise agreement that might require a franchisee to acknowledge something that could be construed as waiving rights or claims are not enforceable in Washington.
Specifically, the Washington Addendum states that no statement, questionnaire, or acknowledgment signed by a Ledgers franchisee can waive claims under Washington's franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Ledgers or its representatives. This provision overrides any conflicting terms in other documents related to the franchise agreement.
Furthermore, any part of the franchise agreement that might prevent a franchisee from communicating with or complaining to regulators is inconsistent with the Franchise Disclosure Document and is unlawful under Washington state law. This ensures that Ledgers franchisees in Washington have the right to report concerns to regulatory bodies without fear of reprisal, reinforcing the protections afforded by Washington's Franchise Investment Protection Act.