factual

Can a Ledgers franchisee bring an action in Washington for violations of the Washington Franchise Investment Protection Act?

Ledgers Franchise · 2025 FDD

Answer 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.

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to Ledgers's 2025 Franchise Disclosure Document, a franchisee may bring an action or proceeding in Washington arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, if litigation is not precluded by the franchise agreement. This is clarified in the Washington Addendum to the Franchise Disclosure Document, Franchise Agreement, and Related Agreements, which applies if the offer to sell a franchise is accepted in Washington, the purchaser of the franchise is a resident of Washington, and/or the franchised business is to be located or operated, wholly or partly, in Washington.

This provision ensures that Ledgers franchisees operating in Washington have the ability to seek legal recourse within the state for violations of the Washington Franchise Investment Protection Act. It also states that the site of arbitration or mediation involving a franchise purchased in Washington will be either in the state of Washington, or in a place mutually agreed upon, or as determined by the arbitrator or mediator.

However, the FDD also states that 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. Additionally, any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.