When are provisions requiring Angry Chickz franchisees to waive exemplary or punitive damages void?
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. This is related to the fact that RCW 19.100.190 permits franchisees to seek treble damages under certain conditions.
However, there is an exception to this rule. Such provisions are not void when they are executed as part of a negotiated settlement. This settlement must occur after the franchise agreement is already in effect.
Furthermore, for the waiver to be valid, both Angry Chickz and the franchisee must be represented by independent legal counsel during the negotiation of the settlement, in accordance with RCW 19.100.220(2). This ensures that the franchisee's rights are protected and that the settlement is fair and informed.