When is a waiver of exemplary or punitive damages valid for a Black Bear Diner franchise?
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 FDD, Washington state law RCW19.100.190 allows Black Bear Diner franchisees to seek treble damages under certain conditions. However, any provisions in the franchise agreement that require franchisees to waive exemplary, punitive, or similar damages are void.
There is an exception to this rule. A waiver of exemplary or punitive damages is valid only when it is executed as part of a negotiated settlement after the franchise agreement is already in effect.
For such a waiver to be enforceable, both the franchisee and Black Bear Diner must be represented by independent legal counsel during the negotiation of the settlement, in accordance with RCW19.100.220(2). This ensures that the franchisee's rights are protected and that the settlement is fair and equitable.