When is a release or waiver of rights in the Stretch Zone franchise agreement NOT void in Washington?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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- General Release. 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 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, a release or waiver of rights within the franchise agreement, which would typically bind a franchisee to waive compliance with the Washington Franchise Investment Protection Act, is generally considered void. However, there is an exception to this rule.
The waiver is not void if it is executed as part of a negotiated settlement that occurs after the franchise agreement is already in effect. Additionally, for the waiver to be valid, both parties involved must be represented by independent legal counsel. This provision is in accordance with Washington state law, specifically RCW 19.100.220(2).
Furthermore, any release or waiver connected to the renewal or transfer of a Stretch Zone franchise is also void unless it meets the same conditions outlined in RCW 19.100.220(2). This means that even during a renewal or transfer, the franchisee's rights under the Washington Franchise Investment Protection Act are protected unless the waiver is part of a negotiated settlement with independent legal representation.