When is a waiver of exemplary, punitive, or similar damages void for a Chesters franchise 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, a waiver of exemplary, punitive, or similar damages within a franchise agreement is generally void in Washington state. This protection is in place because Washington law (RCW 19.100.190) allows franchisees to seek treble damages under certain conditions.
However, there's a specific exception to this rule. Such a waiver is not void if it is part of a negotiated settlement reached after the franchise agreement has already taken effect. Furthermore, for the waiver to be valid, both Chesters and the franchisee must be represented by independent legal counsel during these negotiations, as stipulated by RCW 19.100.220(2).
In practical terms, this means that as a Chesters franchisee in Washington, you cannot be forced to waive your right to seek exemplary or punitive damages at the outset of the agreement. You retain this right unless you later agree to waive it in a settlement, with the crucial safeguard of having your own lawyer advise you. This provision aims to protect franchisees from being coerced into giving up important legal rights without proper representation and understanding of the implications.