When is a release or waiver of rights valid for a Moes Southwest Grill franchisee in Washington?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- **4.
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 Moe's Southwest Grill Franchise Disclosure Document, a release or waiver of rights within the franchise agreement or related documents is generally void in Washington, with a specific exception. This is intended to protect franchisees from unknowingly giving up their rights under the Washington Franchise Investment Protection Act.
The exception to this rule is when the release or waiver is executed as part of a negotiated settlement after the franchise agreement is already in effect. For this exception to be valid, both parties (Moe's Southwest Grill and the franchisee) must be represented by independent legal counsel. This ensures that the franchisee has received proper advice and understands the implications of waiving their rights.
Additionally, any release or waiver executed in connection with a renewal or transfer of a Moe's Southwest Grill franchise is also void, except under the same conditions specified in RCW 19.100.220(2). This statute likely outlines specific requirements for such releases to be valid, such as independent legal representation and fair negotiation. Therefore, franchisees in Washington should seek independent legal advice before signing any release or waiver to ensure their rights are protected under the Washington Franchise Investment Protection Act.