When is a waiver of exemplary, punitive, or similar damages by a Cinnaholic franchisee considered valid?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, a waiver of exemplary, punitive, or similar damages by a franchisee is generally considered void. However, there are specific conditions under which such a waiver can be valid.
The waiver is permissible only if it is executed as part of a negotiated settlement that occurs after the franchise agreement is already in effect. This means that the waiver cannot be a pre-condition of the franchise agreement itself.
Furthermore, for the waiver to be valid, both Cinnaholic and the franchisee must be represented by independent legal counsel during the negotiation of the settlement. This requirement ensures that the franchisee has adequate protection and advice when agreeing to waive their rights to seek certain damages. This is in accordance with RCW 19.100.220(2).