Can a Ledgers franchisee waive compliance with any provision under the Washington Franchise Investment Protection Act?
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's 2025 Franchise Disclosure Document, a franchisee's ability to waive compliance with the Washington Franchise Investment Protection Act is restricted. A release or waiver in the franchise agreement that attempts to waive compliance with any provision under this Act, or its rules and orders, is considered void.
However, there is an exception: such a waiver is permissible if it's executed as part of a negotiated settlement after the franchise agreement is already in effect. In this case, both parties must be represented by independent legal counsel, in accordance with RCW 19.100.220(2). This exception ensures that any waiver is the result of informed negotiation rather than a standard contractual term imposed at the outset.
Furthermore, any release or waiver connected to the renewal or transfer of a Ledgers franchise is also void, except under the same conditions specified in RCW 19.100.220(2). This means that franchisees cannot be compelled to waive their rights under the Washington Franchise Investment Protection Act as a condition of renewing or transferring their franchise, unless the negotiated settlement and independent counsel requirements are met. This protects franchisees from potentially unfair pressure during critical junctures of their franchise ownership.