For a Ledgers franchise in Washington, what is the effect of the Washington Franchise Investment Protection Act on the franchisee's ability to bring an action or proceeding?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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- General Release.
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).
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- Statute of Limitations and Waiver of Jury Trial.
Provisions contained in the franchise agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the Washington Franchise Investment Protection Act provides certain protections and rights to franchisees in Washington. Specifically, a Ledgers franchisee in Washington has the right to bring an action or proceeding in Washington if litigation is not precluded by the franchise agreement and the action arises out of or relates to the sale of franchises or a violation of the Washington Franchise Investment Protection Act. This ensures that franchisees have a local forum to resolve disputes related to franchise sales or violations of the Act.
Furthermore, any release or waiver of rights that attempts to waive compliance with any provision under the Washington Franchise Investment Protection Act is void. The only exception is when the release is executed pursuant to a negotiated settlement after the franchise agreement is in effect, and both parties are represented by independent counsel, as per RCW 19.100.220(2). This protection extends to releases or waivers executed in connection with a renewal or transfer of a franchise, ensuring franchisees cannot inadvertently or unknowingly give up their rights under the Act.
Additionally, provisions in the franchise agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable. This prevents Ledgers from imposing unduly restrictive time limits or waiving fundamental rights, such as the right to a jury trial, related to claims under the Act. These stipulations collectively strengthen the legal standing and rights of Ledgers franchisees in Washington, ensuring compliance with state law and providing avenues for legal recourse within the state.