When is a waiver of exemplary, punitive, or similar damages NOT 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, provisions requiring franchisees to waive exemplary, punitive, or similar damages are generally void in Washington state. However, there are specific circumstances under which such a waiver may be considered valid and enforceable.
Specifically, a waiver of exemplary, punitive, or similar damages is not void if it is executed pursuant to a negotiated settlement after the franchise agreement is already in effect. In addition, for the waiver to be valid, both Chesters and the franchisee must be represented by independent counsel during the negotiation and execution of the settlement. This ensures that the franchisee's rights are protected and that the waiver is entered into knowingly and voluntarily.
This provision is in accordance with RCW 19.100.220(2), which governs waivers and releases under the Washington Franchise Investment Protection Act. Prospective Chesters franchisees in Washington should be aware of this protection and consult with independent legal counsel before agreeing to any waiver of rights, especially those related to exemplary or punitive damages.