Washington Code 19.100.080 – Unlawful acts — Sale of franchise — Terms of franchise agreement
Current as of: 2023 | Check for updates
|
Other versions
(1) It is unlawful for any person to sell a franchise that is registered or required to be registered under this chapter without first furnishing to the prospective franchisee a copy of the franchisor‘s current disclosure document, as described in RCW 19.100.040 and 19.100.070, at least fourteen calendar days prior to the execution by the prospective franchisee of any binding franchise or other agreement, or at least fourteen calendar days before the prospective franchisee signs a binding agreement with, or makes any payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
Terms Used In Washington Code 19.100.080
- Affiliate: means a person controlling, controlled by, or under common control with another person, every officer or director of such person, and every person occupying a similar status or performing similar functions. See Washington Code 19.100.010
- Franchise: means :
Washington Code 19.100.010Franchisee: means a person to whom a franchise is offered or granted. See Washington Code 19.100.010 Franchisor: means a person who grants a franchise to another person. See Washington Code 19.100.010 Person: means a natural person, corporation, partnership, trust, or other entity and in the case of an entity, it shall include any other entity which has a majority interest in such an entity or effectively controls such other entity as well as the individual officers, directors, and other persons in act of control of the activities of each such entity. See Washington Code 19.100.010 Prospective franchisee: means any person, including any agent, representative, or employee, who approaches or is approached by a franchise seller to discuss the possible establishment of a franchise relationship. See Washington Code 19.100.010 sell: includes every contract of sale, contract to sell, or disposition of a franchise. See Washington Code 19.100.010
(2) It is unlawful for any franchisor to alter unilaterally and materially the terms and conditions of the basic franchise agreement or any related agreements attached to the disclosure document without furnishing the prospective franchisee with a copy of each revised agreement at least seven calendar days before the prospective franchisee signs the revised agreement. Changes to an agreement that arise out of negotiations initiated by the prospective franchisee do not trigger this seven calendar day period.