Are provisions requiring Dryject franchisees to waive exemplary damages always void?

According to Dryject's 2025 Franchise Disclosure Document, provisions requiring franchisees to waive exemplary, punitive, or similar damages are generally void. However, there is an exception: such waivers are permissible if executed pursuant to a negotiated settlement after the franchise agreement is already in effect. In this specific case, both parties must be represented by independent legal counsel, in accordance with RCW 19.100.220(2). This statute is part of Washington state law.

This means that Dryject cannot include a clause in the initial franchise agreement that forces a franchisee to give up their right to seek exemplary or punitive damages. The franchisee retains this right unless and until a settlement is reached later, under the specific conditions noted. This protection is particularly relevant in Washington state, where RCW 19.100.190 allows franchisees to seek treble damages under certain circumstances, further emphasizing the importance of this provision.

For a prospective Dryject franchisee, this is a beneficial protection. It ensures that they do not unknowingly or unwillingly forfeit their rights to seek significant damages if Dryject engages in misconduct. However, franchisees should be aware that this protection is not absolute. If a dispute arises after the franchise agreement is signed, and the franchisee, with the advice of independent counsel, agrees to a settlement that includes waiving such damages, that waiver will be enforceable. Therefore, it is crucial for franchisees to seek legal advice before entering into any settlement agreements with Dryject.