factual

What is the impact of RCW 19.100.190 on provisions requiring Carvel franchisees to waive exemplary, punitive, or similar damages?

Carvel Franchise · 2025 FDD

Answer from 2025 FDD Document

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 23 — Receipts (FDD pages 100–353)

What This Means (2025 FDD)

According to Carvel's 2025 Franchise Disclosure Document, RCW 19.100.190 has a specific impact on franchise agreements within Washington state. This law allows franchisees to seek treble damages under certain conditions. Consequently, any part of the Carvel franchise agreement that forces a franchisee to waive their right to claim exemplary, punitive, or similar damages is legally void.

However, there's a notable exception to this rule. If a waiver of these damages is part of a negotiated settlement reached after the franchise agreement is already in effect, and both Carvel and the franchisee are represented by independent legal counsel, the waiver can be valid. This exception aligns with RCW 19.100.220(2), which provides a framework for such negotiated settlements.

In practical terms, this means that a prospective Carvel franchisee in Washington cannot be compelled to give up their right to pursue punitive damages from the outset of the agreement. This protection ensures that franchisees have recourse in cases of significant harm caused by Carvel's actions. However, franchisees should be aware that they can voluntarily waive these rights later on if they enter into a settlement with Carvel, provided they have their own lawyer advising them.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.