Can the Angry Chickz franchise agreement prevent a franchisee from seeking treble damages in Washington?
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, provisions in the franchise agreement that require franchisees in Washington to waive exemplary, punitive, or similar damages are void. This is based on RCW 19.100.190, which permits franchisees to seek treble damages under certain circumstances.
However, there is an exception: such waivers are allowed if they are part of a negotiated settlement reached after the franchise agreement is already in effect. In this case, the franchisee must be represented by independent counsel, as stipulated by RCW 19.100.220(2).
In practical terms, this means that Angry Chickz cannot include a clause in its initial franchise agreement that forces a franchisee to give up their right to seek treble damages in Washington. The franchisee retains this right unless they later agree to waive it in a settlement, under the specific conditions mentioned.