What are the requirements for a negotiated settlement that includes a waiver of exemplary damages for Ledgers franchisees?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
RCW 19.100.190 permits franchisees to seek treble damages under certain circumstances.
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 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, franchisees in Washington State have specific protections regarding waivers of exemplary or punitive damages. Washington law (RCW 19.100.190) allows franchisees to seek treble damages under certain conditions.
The FDD states that any provision requiring a franchisee to waive exemplary, punitive, or similar damages is void unless it meets specific conditions. Such a waiver is only valid if it is part of a negotiated settlement reached after the franchise agreement is already in effect.
Furthermore, for the waiver to be enforceable, both Ledgers and the franchisee must be represented by independent legal counsel during the negotiation of the settlement. This requirement is in accordance with RCW 19.100.220(2). This ensures that the franchisee's rights are protected and that they have received proper legal advice before agreeing to waive their right to seek exemplary or punitive damages.