In Washington, can a franchisee waive rights under the Washington Franchise Investment Protection Act in a release executed with Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act such as a right to a jury trial, may not be enforceable.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, a franchisee in Washington cannot waive their rights under the Washington Franchise Investment Protection Act (WFIPA) in a release, unless specific conditions are met.
Specifically, a waiver is only permissible if it is part of a negotiated settlement that occurs after the franchise agreement is already in effect. Furthermore, for such a waiver to be valid, the franchisee must be represented by independent legal counsel during the negotiation and execution of the settlement. This requirement ensures that the franchisee has proper advice and representation when making decisions that could affect their rights under the WFIPA.
The FDD also states that provisions that unreasonably restrict or limit the statute of limitations for claims under the WFIPA, such as waiving the right to a jury trial, may not be enforceable. This protects franchisees from unknowingly giving up essential legal rights. This provision aims to protect franchisees from overreaching by Southern Steer, ensuring they retain their statutory rights unless explicitly waived under very specific circumstances with legal representation.