When can a Caring Transitions franchisee waive exemplary or punitive damages?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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's 2025 Franchise Disclosure Document, franchisees are generally prohibited from waiving exemplary, punitive, or similar damages. However, there is an exception to this rule.
A Caring Transitions franchisee can waive these 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 of the settlement. This exception is in accordance with RCW 19.100.220(2), a statute in Washington state.
This provision protects franchisees by preventing Caring Transitions from including a blanket waiver of punitive damages in the initial franchise agreement. It ensures that any waiver of these rights is made knowingly and voluntarily, with the benefit of legal advice, in the context of resolving a specific dispute after the franchise relationship has begun.