If a Ledgers franchise is purchased in Washington, can the franchisee bring an action in Washington if litigation is not precluded by the franchise agreement?

According to Ledgers' 2025 Franchise Disclosure Document, a franchisee in Washington may bring an action or proceeding in Washington if litigation is not precluded by the franchise agreement. This action must arise out of or be in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act. This stipulation is part of the Washington Addendum to the Franchise Disclosure Document, Franchise Agreement, and related agreements, and applies if the offer to sell a franchise is accepted in Washington, the purchaser is a resident of Washington, and/or the franchised business is to be located or operated in Washington.

This provision ensures that Ledgers franchisees in Washington have the right to pursue legal action within their own state under specific conditions. It protects their ability to address issues related to the franchise sale or violations of the Washington Franchise Investment Protection Act. The FDD also states that the Washington Franchise Investment Protection Act, chapter 19.100 RCW, will prevail in the event of a conflict of laws.

This clause is significant because it prevents Ledgers from forcing Washington franchisees to litigate disputes in another state, which could be more costly and inconvenient for the franchisee. It also reinforces the franchisee's rights under Washington law, ensuring that they are not unfairly disadvantaged by the franchise agreement. Prospective franchisees should carefully review the franchise agreement and any related addenda to understand their rights and obligations, particularly concerning dispute resolution and applicable state laws.