When are provisions requiring Dryject franchisees to waive exemplary or punitive damages considered void?
Dryject 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 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, 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 is because the law permits franchisees to seek treble damages in certain situations.
However, there's a specific exception to this rule. Such waiver provisions are not void if they are part of a negotiated settlement reached after the franchise agreement is already in effect. In this case, the waiver is permissible only if both parties, Dryject and the franchisee, are represented by independent legal counsel, as stipulated by RCW 19.100.220(2).
This means that Dryject franchisees should be aware of their right to seek exemplary or punitive damages unless they've explicitly waived this right under the specific conditions of a negotiated settlement with independent counsel. This protection ensures that franchisees are not pressured into waiving important legal rights at the outset of the franchise agreement but allows for flexibility in resolving disputes later on, provided both parties have proper representation.