Are provisions that unreasonably restrict the statute of limitations for claims under the Washington Franchise Investment Protection Act enforceable for Monicals Pizza?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF WASHINGTON
ITEM 17 of the Disclosure Document is amended to add the following:
- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
- A general release or waiver of rights executed by a Franchisee will not include rights under the Washington Franchise Investment Protection Act.
- Provisions such as those that unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
- Transfer fees are collectable to the extent that they reflect the Franchisor's reasonable estimated or actual costs in effecting a transfer.
- The Franchise Agreement and Area Development Agreement require any litigation or arbitration to be conducted in a state other than Washington; the requirement shall not limit any rights franchisee may have under the Washington Franchise Investment Protection Act to bring suit in the State of Washington.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, certain provisions within the franchise agreement may not be enforceable in Washington. Specifically, provisions that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act (WFIPA) may not be enforceable. This also applies to rights or remedies under the Act, such as the right to a jury trial. This protection is explicitly outlined in an addendum to Item 17 of the disclosure document for franchisees in Washington.
This means that if a Monicals Pizza franchisee in Washington believes the franchise agreement unduly restricts their ability to bring a claim under the WFIPA within the legally prescribed time frame, or limits other rights, a court may deem those restrictions unenforceable. The WFIPA is designed to protect franchisees, and this clause ensures that franchisees in Washington retain the full protections afforded to them under that law.
Furthermore, the addendum states that in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act will prevail. The Franchise Agreement and Area Development Agreement require any litigation or arbitration to be conducted in a state other than Washington; the requirement shall not limit any rights franchisee may have under the Washington Franchise Investment Protection Act to bring suit in the State of Washington. This reinforces the priority of Washington law in disputes involving Monicals Pizza franchises within the state.
Prospective Monicals Pizza franchisees in Washington should carefully review the franchise agreement and this addendum with legal counsel to fully understand their rights and protections under the Washington Franchise Investment Protection Act. They should pay close attention to any clauses that seem to limit their ability to pursue legal claims or remedies, as these may not be enforceable.