What RCW section governs the waiver of exemplary damages for Basecamp Fitness franchisees?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| FRANCHISEE: | | | | | | | PERSONAL GUARANTORS: | | | | | | | Individually | | | Individually | | | | Print Name | | | Print Name | | | | Address | | | Address | | | | City | State | Zip Code | City | State | Zip Code | | Telephone | | | | Telephone | | | | | | | | |
It is further understood and agreed by the undersigned that the provisions, covenants and
GENERAL RELEASE
| In consideration of the agreement of BASECAMP FITNESS FRANCHISOR LLC ("Franchisor") to allow ("Franchisee") to [RENEW OR TRANSFER] its Franchise Agreement dated between Franchisee and Franchisor ("Agreement"), Franchisee hereby releases and forever discharges Franchisor, and its affiliates, as well as their current or former members, directors, officers, employees and agents, in their corporate and individual capacities, and their respective heirs, personal representatives, successors and assigns, from any and all claims Franchisee may have against such parties known and unknown, foreseen and unforeseen, from the beginning of time to the date hereof, whether in law or in equity, including, but not limited to, any claims arising out of the offer or sale of any franchise to Franchisee, and any matters arising under the Agreement or under any other agreement between Franchisee and Franchisor or its affiliates. | ||
|---|---|---|
| The general release does not apply with respect to claims arising under the Washington Franchise Investment | ||
| Protection Act, RCW 19.100, and the rules adopted thereunder. | ||
| [FOR TRANSFERS: Further, Franchisee acknowledges that transfer of the Agreement shall terminate Franchisee's | ||
| interest in the Agreement, but Franchisee will continue to be bound by all post-termination provisions of the | ||
| Agreement, including but not limited to the obligations of confidentiality, and the covenant not to compete | ||
| contained in the Agreement.] | ||
| [IN CALIFORNIA: The foregoing release is intended as a general release of | ||
| all claims, demands, actions, causes | ||
| of action, obligations, damages and liabilities of any kind or nature whatsoever that relate to the matters recited | ||
| therein, and is intended to encompass all known and unknown, foreseen and unforeseen claims which the releasing | ||
| party may have against any party being released. Section 1542 of the California Civil Code provides: | ||
| A general release does not extend to claims that the creditor or releasing party does not know or | ||
| suspect to exist in his or her favor at the time of executing the release and that, if known by him | ||
| or her, would have materially affected his or her settlement with the debtor or released party. |
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the general release signed by the franchisee does not apply to claims arising under the Washington Franchise Investment Protection Act, specifically RCW 19.100, and its associated rules. This information is found within the context of a general release that Basecamp Fitness may require a franchisee to sign when renewing or transferring their franchise agreement. The release aims to discharge Basecamp Fitness from various claims the franchisee might have, but it explicitly excludes claims protected by the mentioned Washington state law.
For a prospective Basecamp Fitness franchisee in Washington, this means that while they may be asked to sign a broad release of claims, their rights under the Washington Franchise Investment Protection Act (RCW 19.100) remain intact. This Act likely provides certain protections and rights that cannot be waived by the franchisee. The FDD also mentions California Civil Code Section 1542 regarding general releases, but it clarifies that franchisees expressly waive the provisions of Section 1542 of the California Civil Code and expressly release each party to be released from all liability or claims arising out of any matters recited in the release.
It is important for potential franchisees to understand the implications of any release they are asked to sign and to be aware of their rights under applicable state laws. Consulting with an attorney is advisable to fully grasp the scope and limitations of such releases and to ensure that their rights are protected, particularly concerning franchise investment protection laws like RCW 19.100 in Washington.