When is a waiver of exemplary, punitive, or similar damages void for a Christian Brothers Automotive franchise?

According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, provisions requiring franchisees to waive exemplary, punitive, or similar damages are generally void in Washington state. However, there's an exception: such waivers are permissible if executed as part of a negotiated settlement after the franchise agreement is already in effect. In this specific case, both parties must be represented by independent legal counsel, adhering to the stipulations outlined in RCW 19.100.220(2). RCW 19.100.190 allows franchisees to seek treble damages under certain conditions.

This means that as a Christian Brothers Automotive franchisee in Washington, you generally cannot waive your right to seek exemplary or punitive damages upfront in the franchise agreement. This protection is in place to ensure that franchisees retain the ability to pursue full legal remedies if they experience damages due to the franchisor's actions. However, if a dispute arises after the franchise agreement is in effect, and you and Christian Brothers Automotive reach a negotiated settlement with independent legal representation, you can then agree to waive such damages as part of that settlement.

This provision is particularly important for prospective franchisees in Washington because it ensures they retain certain legal rights and remedies under the Washington Franchise Investment Protection Act. It prevents Christian Brothers Automotive from including clauses in the initial franchise agreement that would force franchisees to give up their right to seek punitive damages in case of disputes. The requirement for independent counsel and a negotiated settlement ensures that any waiver is made knowingly and voluntarily, with both parties having the benefit of legal advice.