For a Ledgers franchise in Washington, what happens if a release or waiver is not executed pursuant to a negotiated settlement?
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 in the franchise agreement, which would typically prevent a franchisee from taking action against Ledgers, is void under certain circumstances in Washington. Specifically, if the release or waiver attempts to waive compliance with any provision of the Washington Franchise Investment Protection Act, it is considered void unless it meets specific conditions.
For a Ledgers franchisee in Washington, such a release or waiver is only valid if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. Additionally, both Ledgers and the franchisee must be represented by independent legal counsel during these negotiations. This requirement is in accordance with Washington state law (RCW 19.100.220(2)).
Furthermore, any release or waiver connected to the renewal or transfer of a Ledgers franchise in Washington is also void unless it adheres to the same conditions of a negotiated settlement with independent counsel representation, as stipulated by RCW 19.100.220(2). This ensures that franchisees are not pressured into relinquishing their rights without proper legal advice and a fair negotiation process. The purpose of these regulations is to protect franchisees from unknowingly or unfairly waiving their rights under the Washington Franchise Investment Protection Act.