When is a release or waiver of rights valid for a Moes Southwest Grill franchise in Washington?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 FDD, a release or waiver of rights within a Moe's Southwest Grill franchise agreement in Washington is generally considered void if it requires a franchisee to waive compliance with the Washington Franchise Investment Protection Act. However, there is an exception: such a release or waiver is valid if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. In this case, both parties must be represented by independent legal counsel, and the agreement must comply with RCW 19.100.220(2).
This means that Moe's Southwest Grill franchisees in Washington cannot be compelled to sign away their rights under the Washington Franchise Investment Protection Act at the outset of the agreement. This protection ensures that franchisees retain their legal rights and protections under state law.
Furthermore, any release or waiver connected to the renewal or transfer of a Moe's Southwest Grill franchise is also void unless it meets the conditions specified in RCW 19.100.220(2). This provision aims to prevent franchisors from using the renewal or transfer process to pressure franchisees into relinquishing their rights. Franchisees should seek independent legal advice to ensure any release or waiver complies with Washington law and protects their interests.