When are provisions requiring Dryject franchisees to waive exemplary damages not void?

According to Dryject's 2025 Franchise Disclosure Document, provisions requiring franchisees to waive exemplary, punitive, or similar damages are generally considered void. However, there is an exception to this rule. Such provisions are not void when they are executed as part of a negotiated settlement that occurs after the franchise agreement is already in effect. In addition, both parties, the franchisor and franchisee, must be represented by independent legal counsel during these negotiations. This exception is in accordance with RCW 19.100.220(2).

This means that while Dryject cannot initially include a clause in the franchise agreement that forces a franchisee to waive their right to seek exemplary or punitive damages, such a waiver can be valid if it arises from a later settlement. This settlement must be genuinely negotiated, and the franchisee must have their own lawyer advising them.

This provision aims to protect franchisees from being forced into unfair agreements at the outset of the franchise relationship while still allowing for flexibility in resolving disputes later on, provided both parties have proper representation. Prospective Dryject franchisees should understand this exception and ensure they seek independent legal advice before agreeing to any settlement that involves waiving their rights to damages.