When is a provision requiring a Bumper Man franchisee to waive exemplary damages considered void?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
19.100.180(2)(d).
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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).
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- Franchisor's Business Judgement.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a provision requiring franchisees to waive exemplary, punitive, or similar damages is generally void in Washington, based on RCW 19.100.190, which permits franchisees to seek treble damages under certain conditions.
However, there's an exception: such a waiver is permissible if it's part of a negotiated settlement reached after the franchise agreement is already in effect. Furthermore, for the waiver to be valid, both Bumper Man and the franchisee must be represented by independent legal counsel during these negotiations, as stipulated by RCW 19.100.220(2).
In North Dakota, any provisions in the Franchise Agreement that require the franchisee to waive the right to exemplary or punitive damages is deleted from any Franchise Agreement issued in the State of North Dakota.