Under what circumstances can a Cinnaholic franchisee waive their right to exemplary or punitive damages in Washington state?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- **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 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Washington state law (RCW 19.100.190) allows franchisees to seek treble damages under certain conditions. Generally, any provision in the franchise agreement that requires a franchisee to waive exemplary, punitive, or similar damages is considered void. However, there is an exception to this rule.
A Cinnaholic franchisee can waive their right to exemplary or punitive damages in Washington if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect. Additionally, for the waiver to be valid, both Cinnaholic and the franchisee must be represented by independent legal counsel during the negotiation of the settlement, as stipulated by RCW 19.100.220(2).
This provision ensures that franchisees are protected from being forced to waive their rights upfront in the franchise agreement. It allows for waivers only when they are part of a voluntary settlement of a dispute, ensuring the franchisee has the benefit of independent legal advice and is making an informed decision. This is a protective measure under Washington's Franchise Investment Protection Act.