What is the effect of a general release on compliance with the Washington Franchise Investment Protection Act for Ledgers franchisees?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, a general release or waiver of rights within the franchise agreement, which aims to waive compliance with any provision under the Washington Franchise Investment Protection Act (WFIPA), is generally void. This protection extends to the Act's rules and orders. However, there is an exception: a release is valid if it's part of a negotiated settlement reached after the franchise agreement is already in effect, and both Ledgers and the franchisee are represented by independent legal counsel, as stipulated by RCW 19.100.220(2).
Furthermore, any such release or waiver that is executed when a Ledgers franchise is either renewed or transferred is also considered void. The same exception applies, where it can be valid only if it meets the conditions specified in RCW 19.100.220(2), involving a negotiated settlement with independent legal representation after the agreement is in effect.
In essence, Ledgers franchisees in Washington are protected by the WFIPA against unknowingly waiving their rights through standard release agreements. The law ensures that franchisees can only waive their rights knowingly and voluntarily, under specific circumstances where they have the benefit of independent legal advice and are part of a settlement reached after the franchise relationship has begun. This safeguards franchisees from potential overreach by Ledgers and ensures compliance with Washington state law.