What is the exception to the rule that a waiver of exemplary or punitive damages is void for a Basecamp Fitness franchise?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, franchisees are generally protected from waiving their right to seek exemplary, punitive, or similar damages. This protection stems from RCW 19.100.190, which permits franchisees to seek treble damages under specific conditions.
However, there is an exception to this rule. A Basecamp Fitness franchisee can waive their right to exemplary or punitive damages if the waiver is executed as part of a negotiated settlement. This settlement must occur after the franchise agreement is already in effect.
For this waiver to be valid, both Basecamp Fitness 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 waiver is entered into knowingly and voluntarily.