Does the franchise agreement for Christies International Real Estate allow for the waiver of punitive damages?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
Fair and Reasonable Pricing.** Any provision in the franchise agreement or related agreements that requires the franchisee to purchase or rent any product or service for more than a fair and reasonable price is unlawful under RCW 19.100.180(2)(d).
- **10.
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 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 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to the 2025 Christies International Real Estate Franchise Disclosure Document, provisions in the franchise agreement that require franchisees to waive exemplary, punitive, or similar damages are void. However, there is an exception: such waivers are allowed if executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, as per RCW 19.100.220(2). RCW 19.100.190 permits franchisees to seek treble damages under certain circumstances.
This means that Christies International Real Estate franchisees generally cannot be forced to waive their right to seek punitive damages through the initial 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.
The exception allows for waivers in settlement agreements reached after the franchise agreement is already in force. This provides flexibility for resolving disputes, but only under specific conditions: the settlement must be negotiated, it must occur after the franchise agreement has taken effect, and both parties must have independent legal representation. This ensures that any waiver of rights is made knowingly and voluntarily with the benefit of legal advice.
This clause reflects a legal protection for franchisees, particularly in states like Washington that have franchise-specific laws. Prospective Christies International Real Estate franchisees should be aware of this provision, understanding that their right to seek punitive damages is generally protected unless specific conditions for a waiver are met during a settlement.