Can Cr3 American Exteriors franchisees waive exemplary or punitive damages?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
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 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 Cr3 American Exteriors FDD, the franchise agreement cannot require franchisees to waive exemplary, punitive, or similar damages. This is based on RCW 19.100.190, which permits franchisees to seek treble damages under certain circumstances.
However, there is an exception to this rule. A Cr3 American Exteriors 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 must be represented by independent legal counsel, as stipulated by RCW 19.100.220(2).
This provision protects Cr3 American Exteriors franchisees from being forced to give up their rights to seek certain damages at the outset of the agreement. It ensures they retain the ability to pursue such damages should the need arise, unless they knowingly and voluntarily agree to waive them later in a settlement with proper legal representation.