What is the significance of RCW 19.100.220(2) for Sonesta Select Sonesta Essential franchisees in Washington?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, RCW 19.100.220(2) sets specific conditions under which a Sonesta Select Sonesta Essential franchisee in Washington can validly waive their rights under the Washington Franchise Investment Protection Act. Generally, any release or waiver of rights that attempts to excuse compliance with the Act is considered void. However, there's an exception carved out by RCW 19.100.220(2).
This exception allows a franchisee to execute a valid waiver or release, but only if it meets stringent requirements. First, the waiver must be part of a negotiated settlement. This means it can't be a standard clause in the initial franchise agreement; it has to arise from a specific dispute or negotiation after the franchise agreement is already in effect. Second, the franchisee must be represented by independent legal counsel during these negotiations. This ensures that the franchisee has professional advice and isn't pressured into giving up their rights unknowingly.
Furthermore, the FDD clarifies that any release or waiver executed in connection with a renewal or transfer of a Sonesta Select Sonesta Essential franchise is also void unless it adheres to the conditions outlined in RCW 19.100.220(2). This means that even when renewing or transferring their franchise, franchisees cannot be compelled to waive their rights under the Washington Franchise Investment Protection Act unless they have independent counsel and the waiver is part of a negotiated settlement. This provision aims to protect franchisees from potential overreach by Sonesta Select Sonesta Essential, ensuring they retain their legal protections unless specific conditions are met.