For a Ledgers franchise in Washington, what is the effect of RCW 19.100.220(2) on releases or waivers executed in connection with a renewal or transfer?
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, for franchisees in Washington, any release or waiver of rights within the franchise agreement or related documents is void if it requires the franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act. There is an exception to this rule, as specified by RCW 19.100.220(2), which states that a release or waiver is permissible if it is executed as part of a negotiated settlement after the franchise agreement is already in effect, and both parties are represented by independent legal counsel.
Specifically, any release or waiver executed during the renewal or transfer of a Ledgers franchise is also void unless it adheres to the conditions outlined in RCW 19.100.220(2). This means that during a renewal or transfer, Ledgers cannot enforce a release or waiver that compels a franchisee to give up their rights under the Washington Franchise Investment Protection Act, unless the aforementioned conditions of a negotiated settlement with independent counsel are met.
This provision protects Ledgers franchisees in Washington by ensuring they do not unknowingly or unfairly relinquish their rights under state law during the franchise relationship, especially during critical junctures like renewal or transfer. Franchisees should seek independent legal counsel to fully understand their rights and obligations under the Washington Franchise Investment Protection Act and to ensure that any releases or waivers they sign are enforceable.