When is a waiver of exemplary damages valid for a Ledgers franchise under RCW 19.100.220(2)?

According to the 2025 Ledgers Franchise Disclosure Document, franchisees in Washington have specific protections under the Washington Franchise Investment Protection Act. Provisions requiring franchisees to waive exemplary, punitive, or similar damages are generally void. However, there is an exception: such waivers are valid if executed pursuant to a negotiated settlement after the franchise agreement is already in effect.

For a waiver to be valid, both parties must be represented by independent legal counsel during the negotiation of the settlement. This requirement ensures that the franchisee's rights are protected and that the waiver is entered into knowingly and voluntarily. This is in accordance with RCW 19.100.220(2), the Revised Code of Washington section governing these waivers.

This means that while Ledgers cannot initially require a franchisee to waive their right to seek exemplary or punitive damages, such a waiver can be enforceable if it's part of a settlement reached after the franchise agreement has been signed, and both Ledgers and the franchisee have their own lawyers advising them. Prospective franchisees should understand this provision, as it affects their ability to seek certain damages in the event of a dispute with Ledgers.