For a Ledgers franchise in Washington, what is the effect if a release or waiver is executed before the agreement is in effect?
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 release or waiver of rights within the franchise agreement, or related agreements, is considered void in Washington if it aims to waive compliance with any provision under the Washington Franchise Investment Protection Act, including its rules and orders.
However, there is an exception: such a release or waiver is valid if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. Additionally, both parties involved must be represented by independent legal counsel during the settlement, as stipulated by RCW 19.100.220(2).
This protection extends to renewals or transfers of a Ledgers franchise; any release or waiver executed in connection with a renewal or transfer is also void unless it meets the conditions specified in RCW 19.100.220(2). This ensures that franchisees are not pressured into waiving their rights under the Washington Franchise Investment Protection Act at any stage of their franchise relationship without proper legal representation and a fair negotiation process.