When are provisions requiring Degree Wellness franchisees to waive exemplary damages considered void?
Degree_Wellness 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 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, provisions requiring franchisees to waive exemplary, punitive, or similar damages are generally void under Washington state law (RCW 19.100.190), which permits franchisees to seek treble damages in certain situations.
However, there is an exception. Such waiver provisions are permissible and not considered void if they are executed as part of a negotiated settlement after the franchise agreement is already in effect.
Furthermore, for the waiver to be valid, both Degree Wellness 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 ensures that the franchisee's rights are protected and that the settlement is fair and informed.