Can a Christian Brothers Automotive franchisee waive exemplary and punitive damages in Washington?

According to the 2025 Christian Brothers Automotive FDD, provisions in the franchise agreement that require franchisees to waive exemplary, punitive, or similar damages are generally void in Washington state. This protection is afforded to franchisees under RCW 19.100.190, which permits franchisees to seek treble damages in certain situations. This means that Christian Brothers Automotive franchisees in Washington typically cannot be forced to give up their right to pursue these types of damages.

However, there is an exception to this rule. A Christian Brothers Automotive franchisee can waive these damages if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect. Additionally, for such a waiver to be valid, both parties (Christian Brothers Automotive 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 particularly important for prospective Christian Brothers Automotive franchisees in Washington as it safeguards their ability to seek full compensation for damages in case of disputes with the franchisor. It aligns with the Washington Franchise Investment Protection Act, which aims to protect franchisees from unfair contractual terms. Franchisees should be aware of this protection and consult with legal counsel to fully understand their rights under the franchise agreement and Washington law.