What is the effect of a general release on compliance with the Washington Franchise Investment Protection Act for Ledgers?
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's 2025 Franchise Disclosure Document, a general release or waiver of rights within the franchise agreement or related documents, which aims to waive compliance with any provision of 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: such a release is valid if it's part of a negotiated settlement reached after the franchise agreement is already in effect. To ensure fairness and informed consent, both parties must be represented by independent legal counsel during these negotiations, as stipulated by RCW 19.100.220(2). This provision aims to prevent Ledgers from using its potentially stronger bargaining position to force franchisees into unknowingly giving up their rights under the WFIPA.
Furthermore, any release or waiver connected to the renewal or transfer of a Ledgers franchise is also void, unless it meets the same conditions outlined in RCW 19.100.220(2)—namely, a negotiated settlement with independent legal representation. This ensures that franchisees are protected even when making significant decisions about their franchise's future. This protection is in place to ensure franchisees are not pressured into relinquishing their rights during critical junctures of their business ownership.