When are waivers of exemplary or punitive damages by Body20 franchisees considered void?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Body20's 2025 Franchise Disclosure Document, provisions in the franchise agreement that require franchisees to waive exemplary, punitive, or similar damages are generally void. This is based on RCW 19.100.190, which permits franchisees to seek treble damages under certain circumstances.
However, there is an exception to this rule. Such waivers are not void if they are executed as part of a negotiated settlement after the franchise agreement is already in effect. In this case, the waiver is permissible only if both parties are represented by independent legal counsel, in accordance with RCW 19.100.220(2).
This means that while Body20 aims to protect a franchisee's right to seek certain damages, it also allows for the possibility of settling disputes where both parties knowingly and willingly agree to waive such damages with the advice of their own attorneys.