What are the implications of RCW 19.100.220(2) for releases or waivers executed in connection with a renewal or transfer of a Ledgers franchise?
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, any release or waiver of rights within the franchise agreement or related documents, which aims to obligate the franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act, is considered void. This protection applies specifically unless the release is executed under certain strict conditions, namely a negotiated settlement after the franchise agreement is already in effect, and both Ledgers and the franchisee are represented by independent legal counsel.
This safeguard extends to renewals or transfers of a Ledgers franchise. Any release or waiver executed during the renewal or transfer process is also void unless it adheres to the conditions outlined in RCW 19.100.220(2), requiring a negotiated settlement with independent legal representation for both parties. This provision aims to protect franchisees from unknowingly or unfairly relinquishing their rights under the Washington Franchise Investment Protection Act during critical junctures like renewal or transfer.
For a prospective Ledgers franchisee in Washington, this means that any attempt by Ledgers to have them waive their rights under the Washington Franchise Investment Protection Act during the initial agreement, or during a renewal or transfer, is unenforceable unless the franchisee has their own lawyer and the waiver is part of a settlement reached after the initial agreement has taken effect. This ensures that franchisees are not pressured into giving up important legal protections without informed consent and proper representation.