When are provisions requiring Angry Chickz franchisees to waive exemplary or punitive damages valid?
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 that require franchisees to waive exemplary, punitive, or similar damages are generally void. However, there is an exception. Such provisions become valid if they are executed as part of a negotiated settlement after the franchise agreement is already in effect.
For an Angry Chickz franchisee, this means that while the initial franchise agreement cannot force you to waive your right to seek exemplary or punitive damages, you can agree to such a waiver later on if you are settling a dispute with Angry Chickz. This agreement must be reached with the franchisee being represented by independent counsel.
This clause protects the franchisee's right to seek certain damages, ensuring that Angry Chickz cannot initially use its potentially stronger bargaining position to force a waiver. However, it also allows for flexibility in resolving disputes through negotiated settlements where both parties, with the aid of legal counsel, can agree to waive certain claims.