What types of legal protection do franchisees have?
When setting up a franchise in Washington, franchisees have various protections from the law. These protections are designed to ensure that franchisees are not taken advantage of by franchisors. The Washington Franchise Investment Protection Act (FIPA) provides basic rights and protections to franchisees. These include the right to cancel a contract within five days of signing and the right to a written disclosure document that outlines the rights of both the franchisor and franchisee. Franchisees also have the right to dispute any terms of the contract. The Franchise Relationship Law (FRL) protects franchisees when their contracts are terminated or not renewed. The FRL requires franchisors to give franchisees a 90-day notice prior to termination or non-renewal and to provide an explanation for the termination or non-renewal. The law also states that the franchisor must give a good faith effort to find a new investor or franchisee. Washington franchisees also have the right to collective bargaining and to file a class action law suit. This law allows franchisees to band together to negotiate better terms with the franchisor. Franchisees have the right to file class action lawsuits when their rights are violated by the franchisor. Franchisees in Washington have a few legal protections and rights that are designed to ensure that they are not taken advantage of by franchisors. These protections, such as the FIPA, FRL and the right to collective bargaining, provide franchisees with the necessary protections they need to operate a successful business.
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