Does the Body20 franchise agreement include a mutual waiver of punitive damages?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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- MUTUAL WAIVER OF JURY TRIAL AND PUNITIVE DAMAGES. If, and then only to the extent, required by the Minnesota Franchises Law, Sections 16.4 and 16.5 of the Franchise Agreement are deleted.
4. MUTUAL WAIVER OF JURY TRIAL AND PUNITIVE DAMAGES. The following is added to the end of Sections 16.4 and 16.5 of the Franchise Agreement:
HOWEVER, THIS SECTION SHALL NOT ACT AS A CONDITION, STIPULATION OR PROVISION PURPORTING TO BIND ANY PERSON ACQUIRING ANY FRANCHISE TO WAIVE COMPLIANCE WITH ANY PROVISION OF THE ILLINOIS FRANCHISE DISCLOSURE ACT AT SECTION 705/41 OR ILLINOIS REGULATIONS AT SECTION 200.609.
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- Waiver of Exemplary & Punitive Damages.
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 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the franchise agreement includes a mutual waiver of punitive damages, but this is subject to certain state laws. Specifically, for franchisees in Illinois, the agreement includes a clause that adds to Sections 16.4 and 16.5 of the Franchise Agreement a statement that this section does not bind anyone acquiring a franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act.
For franchisees in Washington, provisions 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).
For franchisees in Minnesota, if and only to the extent required by Minnesota Franchises Law, Sections 16.4 and 16.5 of the Franchise Agreement are deleted. This means that the standard waiver of punitive damages may not apply if Minnesota law prohibits such waivers, thus preserving the franchisee's rights under Minnesota law.