Are there any exceptions to the mutual waiver of punitive damages in the Body20 franchise agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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).
-
- Franchisor's Business Judgement.
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.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the franchise agreement includes a mutual waiver of punitive damages. However, there are exceptions to this waiver, particularly for franchisees in certain states like Washington and Illinois.
For Washington franchisees, the FDD states that provisions requiring a waiver of exemplary, punitive, or similar damages are void. The exception is if the waiver is executed pursuant to a negotiated settlement after the agreement is in effect, and both parties are represented by independent counsel, in accordance with RCW 19.100.220(2). This means that a Body20 franchisee in Washington may be able to seek treble damages under certain circumstances, as permitted by RCW 19.100.190, despite any general waiver in the franchise agreement.
For Illinois franchisees, the agreement specifies that the waiver of punitive damages should not act as a condition that binds anyone acquiring a Body20 franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act. This suggests that the waiver's enforceability is limited by the Illinois Franchise Disclosure Act and regulations. Therefore, Body20 franchisees should be aware of their rights and protections under these state-specific laws, as the standard waiver may not be fully enforceable in these jurisdictions.