For a Sonesta Select Sonesta Essential franchise in Washington, what is the requirement for parties dealing with each other?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
and renewal of your franchise. There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor. Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. 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.
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 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 FDD, several provisions address how Sonesta Select Sonesta Essential and its franchisees must deal with each other in Washington.
First, any release or waiver of rights that requires a franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act is void unless it's part of a negotiated settlement after the franchise agreement is in effect, and both parties are represented by independent counsel. This protects franchisees from unknowingly giving up their legal rights. Additionally, any similar release or waiver connected to a franchise renewal or transfer is also void unless it meets the same conditions.
Second, provisions that unreasonably restrict the statute of limitations for claims under the Washington Franchise Investment Protection Act or limit rights and remedies under the Act, such as the right to a jury trial, may not be enforceable. This ensures franchisees retain their legal recourse options. Furthermore, any requirement for a franchisee to purchase or rent products or services at more than a fair and reasonable price is unlawful under Washington state law. Finally, franchisees in Washington cannot be forced to waive exemplary, punitive, or similar damages, except under the same conditions as mentioned above for general waivers, as Washington law (RCW 19.100.190) permits franchisees to seek treble damages in certain cases.
These stipulations collectively aim to protect Sonesta Select Sonesta Essential franchisees in Washington by ensuring they are not subjected to unfair contract terms, unreasonable limitations on their legal rights, or exploitative purchasing requirements. Franchisees should be aware of these protections and consult with legal counsel to fully understand their rights under Washington law.