What is the exception to the rule that a release or waiver of rights is void for a Ledgers franchisee in Washington?
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 release or waiver of rights in the franchise agreement is generally void in Washington if it requires the franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act. However, there is an exception to this rule.
The exception occurs when the release or waiver is executed as part of a negotiated settlement after the franchise agreement is already in effect. In this specific case, the waiver is permissible only if both parties, Ledgers and the franchisee, are represented by independent legal counsel. This ensures that the franchisee's rights are protected during the negotiation process and that the settlement is fair.
This provision is in accordance with RCW 19.100.220(2), which governs such waivers. Additionally, any release or waiver executed during a renewal or transfer of the franchise is also void, except under the same conditions specified in RCW 19.100.220(2). This means that even during a renewal or transfer, a franchisee cannot waive their rights unless it's part of a negotiated settlement with independent counsel representing both sides.