When are provisions requiring Degree Wellness franchisees to waive punitive damages considered void?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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 in the franchise agreement that require franchisees to waive exemplary, punitive, or similar damages are generally considered void under Washington state law (RCW 19.100.190). This means that Degree Wellness franchisees typically retain the right to seek treble damages under certain circumstances, as permitted by law.
However, there is an exception to this rule. Such waiver provisions are not void if they are executed as part of a negotiated settlement after the franchise agreement is already in effect. In this case, the waiver is permissible only if both Degree Wellness and the franchisee are represented by independent legal counsel, in accordance with RCW 19.100.220(2).
In practical terms, this means that a Degree Wellness franchisee cannot be forced to give up their right to seek punitive damages at the outset of the franchise relationship. They can only agree to do so later if they have their own lawyer and are settling a dispute with Degree Wellness. This provision protects the franchisee's ability to pursue legal remedies for damages caused by Degree Wellness's actions, unless they knowingly and voluntarily waive that right during a settlement with independent counsel.