When is a waiver of exemplary or punitive damages void for a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
t requires the franchisee to purchase or rent any product or service for more than a fair and reasonable price is unlawful under RCW 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 the 2025 Bumper Man FDD, a waiver of exemplary, punitive, or similar damages is generally void in Washington state, except under specific circumstances. RCW 19.100.190 allows franchisees to seek treble damages in certain situations. Therefore, any provision in the franchise agreement that requires a franchisee to waive the right to seek exemplary, punitive, or similar damages is void.
However, there is an exception to this rule. Such a waiver is permissible and not void if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. Additionally, for the waiver to be valid, both parties (Bumper Man and the franchisee) must be represented by independent legal counsel during the negotiation and execution of the settlement, as stipulated by RCW 19.100.220(2).
Furthermore, in North Dakota, any provisions in the Bumper Man 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.