When are provisions requiring Del Taco franchisees to waive exemplary or punitive damages considered void?

According to the 2025 Del Taco Franchise Disclosure Document, provisions requiring franchisees to waive exemplary, punitive, or similar damages are generally void in Washington state. However, there's a specific exception: such waivers are permissible if they are part of a negotiated settlement reached after the franchise agreement is already in effect. Additionally, for the waiver to be valid, both Del Taco and the franchisee must be represented by independent legal counsel during these negotiations. This exception is in accordance with Washington state law (RCW 19.100.220(2)).

This means that while Del Taco cannot initially require a franchisee to waive their right to seek exemplary or punitive damages, such a waiver can be agreed upon later if a dispute arises and both parties, with the assistance of their own lawyers, come to a settlement. This protects the franchisee's initial rights under the Washington Franchise Investment Protection Act, which allows franchisees to seek treble damages in certain situations (RCW 19.100.190).

For a prospective Del Taco franchisee in Washington, this is an important safeguard. It ensures that they don't unknowingly give up their rights to potential damages at the outset of the franchise relationship. However, it's equally important to understand that these rights can be waived later on, provided the franchisee has independent legal representation and the waiver is part of a negotiated settlement. Franchisees should carefully consider the implications of any such settlement and seek legal advice before agreeing to waive their rights.