Under what circumstances is a release or waiver of rights void for a Ledgers franchisee in Washington?
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' 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement or related documents is generally void for Washington franchisees if it requires them to waive compliance with any provision of the Washington Franchise Investment Protection Act, including its rules and orders.
However, there are two exceptions to this rule. The first exception is when the release or waiver is executed as part of a negotiated settlement after the franchise agreement is already in effect. In this case, the waiver is only valid if both Ledgers and the franchisee are represented by independent legal counsel. The second exception is when the release or waiver is executed in connection with a renewal or transfer of a franchise, and it adheres to the conditions outlined in RCW 19.100.220(2).
In practical terms, this means that Ledgers franchisees in Washington have significant protection under state law. They cannot be forced to sign away their rights under the Washington Franchise Investment Protection Act unless specific conditions are met, ensuring they have proper representation and the agreement is reached after the initial franchise agreement has begun. This protects franchisees from potentially unfair or coercive practices by the franchisor.