How might RCW 19.100.180 affect the My Salon Suite franchise agreement?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
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. The franchisee may terminate the franchise agreement under any grounds permitted under state law.
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- Certain Buy-Back Provisions. Provisions in franchise agreements or related agreements that permit the franchisor to repurchase the franchisee's business for any reason during the term of the franchise agreement without the franchisee's consent are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause.
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- Fair and Reasonable Pricing. Any provision in the franchise agreement or related agreementsthat requiresthe franchisee to purchase or rent any product or service for more than a fair and reasonable price is unlawful under RCW 19.100.180(2)(d).
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- Waiver of Exemplary & Punitive Damages. RCW 19.100.190 permits franchisees to seek treble damages under certain circumstances.
Source: Item 17 — (r) of the FDD and Section 13 of the Franchise Agreement disclose the existence of certain covenants restricting competition to which Franchisee must agree. The Commissioner has held that covenants restricting competition contrary to Section 9-08-06 of the North Dakota Century Code, without further disclosing that such covenants may be subject to this statue, are unfair, unjust, or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The FDD and the Franchise Agreement are amended accordingly to the extent required by law. (FDD pages 230–274)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, RCW 19.100.180, the Washington Franchise Investment Protection Act, can significantly impact the franchise agreement for franchisees operating in Washington. Several provisions within the franchise agreement may be superseded by this act, affecting the franchisee's rights and obligations.
Specifically, RCW 19.100.180 may override provisions related to termination and renewal of the franchise. The document states that provisions allowing My Salon Suite to repurchase the franchisee's business without consent are unlawful unless the termination is for good cause, as per RCW 19.100.180(2)(j). Additionally, any requirement for a franchisee to purchase or rent products or services at unfair prices is unlawful under RCW 19.100.180(2)(d). Provisions stating that My Salon Suite may exercise discretion based on reasonable business judgment may also be limited by RCW 19.100.180(1), which mandates that parties deal with each other in good faith.
Furthermore, any clauses requiring franchisees to waive exemplary, punitive, or similar damages are void, except in negotiated settlements with independent counsel, as per RCW 19.100.220(2). The franchise agreement is modified to ensure franchisees are not obligated to indemnify My Salon Suite for losses caused by the franchisor's negligence, misconduct, or fraud. Any statement or acknowledgment signed by a franchisee cannot waive claims under state franchise law or disclaim reliance on statements made by My Salon Suite. Provisions prohibiting franchisees from communicating with regulators are also unlawful under RCW 19.100.180(2)(h). These modifications aim to protect franchisees' rights and ensure fair practices within the franchise relationship in Washington.