Can a Caring Transitions franchisee waive exemplary or punitive damages?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees are generally protected from waiving their right to seek exemplary or punitive damages. The FDD states that under RCW 19.100.190, franchisees may be able to seek treble damages in certain situations.
However, there is an exception to this rule. A Caring Transitions franchisee can waive the right to exemplary, punitive, or similar damages if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect. Furthermore, for such a waiver to be valid, both the franchisee and Caring Transitions must be represented by independent legal counsel during the negotiation, as stipulated by RCW 19.100.220(2).
This means that while the initial franchise agreement cannot force a franchisee to waive these potential damages, a franchisee can agree to do so later if they have their own lawyer and are settling a dispute with Caring Transitions. This provision aims to protect franchisees from being coerced into giving up important legal rights at the outset of the franchise relationship while still allowing for flexibility in resolving disputes later on.