In the event of conflicting laws, which law prevails for a Stretch Zone franchise purchased in Washington?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
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- Conflict of Laws. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
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- Franchisee Bill of Rights. 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.
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- Site of Arbitration, Mediation, and/or Litigation. 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.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, for franchise agreements accepted in Washington, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW, will take precedence if there is a conflict of laws. This addendum modifies the franchise agreement and related documents for purchasers or businesses located in Washington. This means that the specific laws of Washington State regarding franchise investments will be the governing legal standard.
This is significant for prospective Stretch Zone franchisees in Washington because it ensures that their franchise agreement adheres to Washington's franchise-specific regulations. These regulations may offer additional protections or impose different requirements compared to the standard franchise agreement. Franchisees should familiarize themselves with the Washington Franchise Investment Protection Act to understand their rights and obligations.
Furthermore, the FDD specifies that RCW 19.100.180, Washington's Franchisee Bill of Rights, may supersede provisions in the franchise agreement, particularly concerning termination and renewal. Court decisions may also override the franchise agreement. This reinforces the importance of understanding state law and how it interacts with the franchise agreement. The agreement also states that any arbitration or mediation will occur in Washington, unless otherwise agreed upon.