Washington Amends Franchise Investment Protection Act

Washington’s Franchise Investment Protection Act, chapter 19.100 RCW (the “Act”), was amended to make technical corrections in the 2012 legislative session through Senate Bill 6172.    The amendments better align the Act with the Federal Trade Commission’s Franchise Rule, 16 CFR § 436, and Washington’s Administrative Procedures Act.  The amendments:

  •  Revise the franchise disclosure document delivery requirements in RCW 19.100.030 and 19.100.080 to be consistent with the delivery requirements set forth in the FTC’s Franchise Rule at 16 CFR § 436.2;
  • Replace references to the “offering circular” throughout the Act with “disclosure document” consistent with the terminology used in the FTC’s Franchise Rule;
  • Create two new definitions that expressly provide for electronic filings;
  • Adopt the FTC’s definition of “prospective franchisee;” and
  • Revise the timing for requesting a hearing from fifteen to twenty calendar days consistent with the requirements set forth in Washington’s Administrative Procedure Act at RCW 34.05.413.

 The effective date of these amendments is June 7, 2012.  If you have any questions regarding these amendments, please contact Faith Anderson by e-mail at faith.anderson@dfi.wa.gov or by telephone at (360) 725-7825.


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Regulatory Activity, State Rule Proposals