For a Ledgers franchise in Washington, can provisions in the franchise agreement restrict rights to a jury trial under the Act?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
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- Conflict of Laws.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, provisions in the franchise agreement that unreasonably restrict rights or remedies under the Washington Franchise Investment Protection Act, such as the right to a jury trial, may not be enforceable in Washington. This protection is explicitly mentioned in the Washington Addendum to the Franchise Disclosure Document, which takes precedence over conflicting terms in the standard agreement. This addendum applies if the franchise is offered or accepted in Washington, if the purchaser is a Washington resident, or if the franchised business is located or operated in Washington.
This means that if a Ledgers franchisee in Washington believes their rights under the Act have been violated, any clause in the franchise agreement attempting to waive their right to a jury trial could be deemed unenforceable. The franchisee would likely retain their right to a jury trial, allowing them to present their case before a jury of their peers. This protection is designed to ensure that franchisees are not unfairly disadvantaged by restrictive contract terms that undermine their legal rights under state law.
Prospective Ledgers franchisees in Washington should carefully review the Washington Addendum and understand their rights under the Washington Franchise Investment Protection Act. They should also consult with an attorney to ensure they fully understand the implications of any clauses in the franchise agreement that may appear to limit their legal remedies. This ensures that franchisees can effectively protect their interests and pursue legal action if necessary, without being unduly restricted by potentially unenforceable contract provisions.