What specific rights does a Ledgers franchisee have under RCW 19.100.180?

According to the 2025 Ledgers Franchise Disclosure Document, RCW 19.100.180(1) requires that Ledgers and its franchisees deal with each other in good faith. The FDD states that any provisions in the franchise agreement allowing Ledgers to use its reasonable business judgment may be limited or superseded by this Washington state law. This means that while the franchise agreement may grant Ledgers some discretionary power, the company must exercise that power in good faith, and a franchisee could potentially challenge decisions that appear to violate this standard.

In practical terms, this clause prevents Ledgers from making arbitrary or unfair decisions, even if the franchise agreement seems to give them the right to do so. For example, if Ledgers were to deny a franchisee's request for a territory expansion based on a subjective assessment, the franchisee could argue that Ledgers did not act in good faith as required by RCW 19.100.180(1). This provides an additional layer of protection for franchisees beyond the specific terms outlined in the franchise agreement.

It is important for prospective Ledgers franchisees in Washington to understand this protection. While the franchise agreement defines the contractual relationship, state law imposes a broader duty of good faith. Franchisees should consult with an attorney to fully understand their rights under RCW 19.100.180(1) and how it may apply to specific situations that arise during the franchise term. This ensures that both Ledgers and its franchisees act fairly and reasonably toward one another.