What is the significance of RCW 19.100.180 for Sonesta Select Sonesta Essential franchisees in Washington?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
Any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).
Any provision in the franchise agreement or related agreements requiring the 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).
RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination 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.
Provisions in the franchise agreement or related agreements stating that the franchisor may exercise its discretion on the basis of its reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 FDD, RCW 19.100.180 holds several key implications for Sonesta Select Sonesta Essential franchisees in Washington. This statute can override specific provisions within the franchise agreement or related documents, particularly concerning the franchisee's relationship with Sonesta Select Sonesta Essential, including aspects of termination and renewal. This means that certain terms outlined in the franchise agreement, even those summarized in Item 17 of the FDD, are subject to Washington state law and may be superseded by RCW 19.100.180.
Furthermore, any part of the franchise agreement that prevents a franchisee from communicating with or complaining to regulators is unlawful under RCW 19.100.180(2)(h). Additionally, if the franchise agreement requires a franchisee to purchase or rent any product or service for more than a fair and reasonable price, that provision is unlawful under RCW 19.100.180(2)(d). These protections ensure that franchisees are not unduly restricted in their ability to raise concerns with regulatory bodies or subjected to unfair pricing practices.
Moreover, provisions in the franchise agreement that allow Sonesta Select Sonesta Essential to exercise discretion based on reasonable business judgment may be limited by RCW 19.100.180(1), which mandates that both parties deal with each other in good faith. This means Sonesta Select Sonesta Essential's decisions must adhere to a standard of good faith, preventing arbitrary or unfair actions. Understanding these stipulations is crucial for prospective franchisees in Washington, as they provide essential safeguards and legal recourse under state law, potentially altering the enforcement of specific terms within the franchise agreement.