What are 'exemplary, punitive, or similar damages' in the context of the Angry Chickz franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Waiver of Exemplary & Punitive Damages.** RCW 19.100.190 permits franchisees to seek treble damages under certain circumstances.
Accordingly, provisions contained in the franchise agreement or elsewhere requiring franchisees to waive exemplary, punitive, or similar damages are void, except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, 'exemplary, punitive, or similar damages' refer to a specific type of financial compensation. The FDD indicates that under RCW 19.100.190, franchisees in certain circumstances may seek treble damages, which are a form of exemplary or punitive damages.
The document clarifies that any provisions within the franchise agreement that require a franchisee to waive their right to seek these types of damages are considered void. However, there's an exception: such waivers are permissible if they are part of a negotiated settlement reached after the franchise agreement is already in effect. In these settlement negotiations, the franchisee must be represented by independent legal counsel, as stipulated by RCW 19.100.220(2).
In essence, this section of the FDD ensures that Angry Chickz franchisees retain the right to pursue significant financial remedies in cases of franchisor misconduct, unless they knowingly and voluntarily relinquish that right during a settlement with the advice of their own attorney. This protection is particularly relevant in Washington state due to the specific references to the Revised Code of Washington (RCW).