When is a waiver of exemplary or punitive damages valid for a Cr3 American Exteriors franchise?
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 Cr3 American Exteriors' 2025 Franchise Disclosure Document, provisions requiring franchisees to waive exemplary, punitive, or similar damages are generally void under Washington law (RCW 19.100.190), which permits franchisees to seek treble damages in certain circumstances.
However, there is an exception: such waivers are valid if executed pursuant to a negotiated settlement after the franchise agreement is already in effect. In this situation, the waiver is only valid if both parties are represented by independent legal counsel, as stipulated by RCW 19.100.220(2).
This means that while Cr3 American Exteriors cannot require a franchisee to waive their right to seek exemplary or punitive damages at the outset of the agreement, a franchisee can agree to such a waiver later on if they are involved in a settlement and have their own lawyer advising them.