What is the condition for a 360 Painting franchisee to waive exemplary, punitive, or similar damages?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Waiver of Exemplary & Punitive Damages. RCW19.100.190 permitsfranchiseesto seek treble damages under certain circumstances.
Accordingly, provisions contained in the franchise agreementor elsewhere requiringfranchiseestowaive exemplary,punitive,or similardamagesarevoid, exceptwhenexecutedpursuanttoanegotiatedsettlementafter the agreement is in effect and where the parties are represented by independent counsel, in accordancewithRCW19.100.220(2).
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 FDD, a 360 Painting franchisee can only waive their right to seek exemplary, punitive, or similar damages under very specific conditions. Washington state law RCW19.100.190 generally allows franchisees to seek treble damages in certain situations. However, the FDD states that any provision requiring a franchisee to waive such damages is void unless it meets certain criteria.
Specifically, a waiver is only valid if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. Furthermore, both 360 Painting and the franchisee must be represented by independent legal counsel during these negotiations. This requirement ensures that the franchisee's rights are protected and that any waiver is made knowingly and voluntarily with the advice of an attorney.
This provision is important for prospective 360 Painting franchisees to understand because it clarifies the limited circumstances under which they can legally waive their right to seek damages. It highlights the importance of having independent legal representation when negotiating any settlement with the franchisor to ensure their interests are adequately protected.