Under what circumstances is a release or waiver of rights considered void for a Ledgers franchise agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
ediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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- General Release. 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).
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- Statute of Limitations and Waiver of Jury Trial. Provisions contained in the franchise agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
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- Transfer Fees. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
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- Termination by Franchisee.
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 void under specific conditions related to the Washington Franchise Investment Protection Act. This protection applies to franchisees operating in Washington state.
Specifically, any release or waiver that requires a franchisee to waive compliance with any provision of the Washington Franchise Investment Protection Act, or its rules and orders, is considered void. There are two exceptions to this rule. The first is when the release is executed as part of a negotiated settlement after the franchise agreement is already in effect, and both Ledgers and the franchisee are represented by independent legal counsel. The second exception is for releases or waivers executed in connection with a renewal or transfer of a franchise, but only as provided for in RCW 19.100.220(2).
Additionally, the FDD states that provisions in the franchise agreement that unreasonably restrict the statute of limitations for claims under the Washington Franchise Investment Protection Act, or that limit rights or remedies under the Act (such as the right to a jury trial), may not be enforceable. Similarly, any provisions requiring a franchisee to waive exemplary, punitive, or similar damages are void, unless executed pursuant to a negotiated settlement with independent counsel after the agreement is in effect, in accordance with RCW 19.100.220(2).