Rutter v. BX of Tri-Cities, Inc.

David Rutter appeals a summary judgment in favor of Business Exchange, Inc., contending Washington's Franchise Investment Protection Act should govern termination of a franchise agreement between Business Exchange, Inc., and BX of Tri-Cities, Inc., despite a choice of law clause in the agreement.

Business Exchange, Inc. (BEI), a California corporation, operates a nationwide barter club for businesses through a number of local franchises called Business Exchanges (BX). Under this franchise arrangement, BEI grants exclusive licenses to qualified franchisees to conduct the business exchange…