Can Black Bear Diner franchisees waive exemplary or punitive damages in Washington?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Waiver of Exemplary & Punitive Damages. RCW19.100.190 permitsfranchisees to seek treble damages under certain circumstances.
Accordingly, provisions contained in the franchise agreement or elsewhere requiring franchiseesto waive exemplary, punitive, or similar damagesarevoid,exceptwhenexecutedpursuanttoanegotiatedsettlementafter the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW19.100.220(2).
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, Washington state law RCW19.100.190 allows franchisees to seek treble damages under certain conditions. The franchise agreement cannot force franchisees to waive their rights to seek exemplary, punitive, or similar damages.
However, there is an exception. A Black Bear Diner franchisee can waive these damages if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect. For this exception to apply, both the franchisee and Black Bear Diner must be represented by independent legal counsel during the settlement negotiations, as stipulated by RCW19.100.220(2).
This means that while Black Bear Diner's initial franchise agreement cannot mandate a waiver of punitive damages, a franchisee can agree to such a waiver later on if they have their own lawyer and are settling a dispute with the franchisor. This protects the franchisee's right to seek damages while allowing for flexibility in resolving disputes through negotiated settlements.