When is a waiver of exemplary, punitive, or similar damages by a Chicken Guy franchisee considered void?
Chicken_Guy 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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, specifically regarding franchises in Washington state, a waiver of exemplary, punitive, or similar damages included in the franchise agreement is generally considered void. However, there's an exception to this rule. Such a waiver is permissible and not void if it is executed as part of a negotiated settlement after the franchise agreement is already in effect.
This exception has two specific conditions. First, the settlement must be negotiated after the franchise agreement has commenced. Second, both Chicken Guy and the franchisee must be represented by independent legal counsel during the negotiation 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 based on Washington state law (RCW 19.100.190 and RCW 19.100.220(2)), which aims to protect franchisees from being forced to give up their rights to seek certain damages unless specific safeguards are in place. Prospective Chicken Guy franchisees in Washington should be aware of this protection and ensure they have independent counsel if negotiating any settlement that includes such a waiver.