When is a release or waiver valid for a Ledgers franchise under RCW 19.100.220(2)?
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 release or waiver of rights within the franchise agreement is only valid under specific conditions for franchisees in Washington state, as governed by the Washington Franchise Investment Protection Act.
Specifically, such a release or waiver is considered valid only if it is executed as part of a negotiated settlement that occurs after the franchise agreement has already taken effect. Furthermore, for the release or waiver to be valid, both Ledgers and the franchisee must be represented by independent legal counsel during these negotiations. This requirement ensures that the franchisee's rights are protected and that they are entering into the agreement with informed consent.
Additionally, any release or waiver connected to the renewal or transfer of a Ledgers franchise is also void unless it adheres to the same conditions outlined in RCW 19.100.220(2). This means that even during a renewal or transfer, the franchisee must have independent legal representation and the release must be part of a negotiated settlement to be considered enforceable under Washington law. These stipulations aim to prevent franchisees from unknowingly or unfairly relinquishing their rights under the franchise agreement or the Washington Franchise Investment Protection Act.