Can Fat Shack franchisees in Washington waive exemplary and punitive damages?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR WASHINGTON FRANCHISEES ONLY:
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act, RCW 19.100, or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, there are specific stipulations for Washington franchisees regarding the waiver of rights. The document states that a waiver executed by a franchisee cannot include rights under the Washington Franchise Investment Protection Act (RCW 19.100) or any related rule or order.
However, there is an exception to this rule. A Fat Shack franchisee in Washington can waive these rights if the waiver is executed as part of a negotiated settlement. This settlement must occur after the franchise agreement is already in effect.
Furthermore, for such a waiver to be valid, both parties (Fat Shack and the franchisee) must be represented by independent legal counsel. This requirement ensures that the franchisee is making an informed decision with the advice of their own attorney, providing a layer of protection.
In practical terms, this means that while a Fat Shack franchisee in Washington cannot initially waive their rights under the Washington Franchise Investment Protection Act, they can do so later if they have their own lawyer and are settling a dispute with Fat Shack after the franchise agreement has commenced.