What are the requirements for a valid negotiated settlement involving a Zoomin Groomin franchisee in Washington?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise 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.
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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).
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Source: Item 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, a release or waiver of rights within the franchise agreement must meet specific conditions to be valid in Washington state. Such a release is only valid if it's part of a negotiated settlement that occurs after the franchise agreement is already in effect.
Furthermore, both parties, the Zoomin Groomin franchisee and the franchisor, must be represented by independent legal counsel during the negotiation of the settlement. This requirement ensures that the franchisee's rights are protected and that they receive competent advice before agreeing to waive any rights under the Washington Franchise Investment Protection Act.
This protection extends to releases or waivers executed during a renewal or transfer of the franchise, which are also void unless they meet the same conditions of a negotiated settlement with independent legal representation. This provision aims to prevent Zoomin Groomin from using its potentially stronger bargaining position to pressure franchisees into waiving their rights without proper legal advice.
In addition, provisions requiring franchisees to waive exemplary, punitive, or similar damages are 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).