How might RCW 19.100.180 affect the franchise agreement for a Stretch Zone franchise in Washington?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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1 Initial Franchise Fee. See ITEM 5 INITIAL FEES for a description of the Initial Franchise Fee.
YOUR ESTIMATED INITIAL INVESTMENT - DEVELOPMENT AGREEMENT
| Type of Expenditure | Amount | Method of Payment | When Due | Column 5 | |---|---|---|---|---| | | | | | | | | | | | To Whom | | | | | | Payment Is To | | | | | | Be Made | | Initial Franchise Fee1 | $59,500 | Lump Sum | When we have fulfilled our pre-opening obligations to you and you have begun doing business Us | | 1 Development Fee. See ITEM 5 INITIAL FEES for a description of the Development Fee.
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.
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 the 2025 Stretch Zone Franchise Disclosure Document, RCW 19.100.180, part of the Washington Franchise Investment Protection Act, plays a significant role in shaping the relationship between Stretch Zone and its franchisees in Washington state. Specifically, the Washington Addendum to the franchise agreement states that RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning the franchisee's relationship with Stretch Zone. This includes areas such as the termination and renewal of the franchise agreement. This means that certain terms in the standard Stretch Zone franchise agreement that might conflict with the rights and protections provided to franchisees under Washington law could be rendered invalid or unenforceable in Washington.
This addendum applies if the offer to sell a Stretch Zone franchise is accepted in Washington, if the purchaser of the franchise is a resident of Washington, or if the franchised business is to be located or operated, wholly or partly, in Washington. The FDD also mentions that court decisions could also supersede the franchise agreement. Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
For a prospective Stretch Zone franchisee in Washington, this is a crucial consideration. It highlights the importance of carefully reviewing the Washington Addendum in conjunction with the standard franchise agreement to understand the full scope of their rights and obligations under Washington law. It also underscores the need to consult with a legal professional experienced in franchise law in Washington to ensure full compliance and to navigate any potential conflicts between the franchise agreement and state law.
Furthermore, the FDD specifies that 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). This ensures that Stretch Zone franchisees in Washington have the right to communicate freely with regulatory bodies without fear of retribution from the franchisor.