For a Ledgers franchise in Washington, what must be true for a release or waiver of rights to be valid?
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).
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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, a release or waiver of rights related to the franchise agreement must meet specific conditions to be valid for franchisees in Washington. The release must be executed as part of a negotiated settlement after the franchise agreement is already in effect. Additionally, both parties, Ledgers and the franchisee, must be represented by independent legal counsel during the negotiation and execution of the release, as mandated by Washington state law (RCW 19.100.220(2)).
This requirement ensures that franchisees are not pressured into unknowingly giving up their rights under the Washington Franchise Investment Protection Act. The presence of independent counsel helps to level the playing field, providing the franchisee with expert advice and ensuring they fully understand the implications of the release or waiver. This protection extends to releases or waivers executed in connection with a renewal or transfer of a franchise, which are also void unless they comply with RCW 19.100.220(2).
Furthermore, the Ledgers FDD states that provisions in the franchise agreement that unreasonably restrict the statute of limitations for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act, such as the right to a jury trial, may not be enforceable. This means Ledgers cannot unduly limit the time a franchisee has to bring a claim or take away their right to a jury trial. This is designed to protect franchisees from unfair contractual terms that could limit their legal recourse.
In summary, for a Ledgers franchise in Washington, any release or waiver of rights must be part of a negotiated settlement with both parties having independent counsel, and provisions that unreasonably restrict the statute of limitations or rights to a jury trial may not be enforceable. These stipulations aim to protect the franchisee's rights under Washington law.