Are there any exceptions to the waiver of punitive or exemplary damages for Dryject franchisees?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties waive, to the extent permitted by law, any claim for punitive or exemplary damages against each other, regardless of each parties' respective right to such damages under the choice of law provision herein except with regard to claims involving Our Marks and Our Confidential Information. Only claim
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, there are some exceptions to the waiver of punitive or exemplary damages. The standard waiver does not apply to claims involving Dryject's Marks and Confidential Information. This means that if a dispute arises related to the misuse of Dryject's trademarks or proprietary information, the franchisee is not barred from seeking punitive or exemplary damages.
Additionally, for franchisees in Washington state, provisions requiring a waiver of exemplary, punitive, or similar damages are void. However, there is an exception: such waivers are allowed if they are part of a negotiated settlement agreed to after the franchise agreement is already in effect, and both Dryject and the franchisee are represented by independent legal counsel. This exception is based on Washington state law (RCW 19.100.220(2)).
These exceptions provide some protection to Dryject franchisees, allowing them to pursue punitive or exemplary damages in specific circumstances where the franchisor's actions involve trademarks, confidential information, or in cases within Washington state where specific conditions are met. It is important for prospective franchisees to understand these exceptions, as the general waiver could significantly limit their potential recovery in a dispute with Dryject.