When is a waiver of exemplary or punitive damages void for a Black Bear Diner franchise?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a waiver of exemplary, punitive, or similar damages included in the franchise agreement or related documents is generally void. This is based on RCW19.100.190, which allows franchisees to seek treble damages under certain conditions.
However, there is an exception to this rule. Such a waiver is not void if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. In this case, both parties must be represented by independent legal counsel, in accordance with RCW19.100.220(2).
In practical terms, this means that Black Bear Diner franchisees generally retain the right to seek exemplary or punitive damages unless they specifically agree to waive that right in a settlement agreement reached after the franchise agreement has been signed, and only if they have their own lawyer advising them during settlement negotiations. This provision aims to protect franchisees from being forced to waive important legal rights at the outset of the franchise relationship.