What are the implications of RCW 19.100.190 for Chesters franchisees regarding exemplary and punitive damages in Washington?
Chesters Franchise · 2025 FDDAnswer 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 settlementafter 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 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, RCW 19.100.190 allows franchisees in Washington to seek treble damages under certain conditions. This means that Chesters cannot enforce any provision in the franchise agreement that requires a franchisee to waive their right to seek exemplary, punitive, or similar damages.
However, there is an exception: a franchisee can waive these damages if it's part of a negotiated settlement reached after the franchise agreement is already in effect. For this waiver to be valid, both Chesters and the franchisee must be represented by independent legal counsel, in accordance with RCW 19.100.220(2).
In practical terms, this addendum to the franchise agreement strengthens the rights of Chesters franchisees in Washington. It prevents Chesters from using the franchise agreement to shield itself from potential liability for exemplary or punitive damages, unless a specific settlement is reached with the franchisee's independent counsel after the agreement has taken effect.