Is a Moes Southwest Grill franchisee in Washington permitted to seek exemplary and punitive damages?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- **10.
Waiver of Exemplary & Punitive Damages.** 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 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, Washington state law impacts the franchisee's ability to waive exemplary, punitive, or similar damages. Specifically, provisions in the franchise agreement that require a franchisee to waive these types of damages are considered void.
This protection for franchisees in Washington exists under RCW 19.100.190, which allows franchisees to seek treble damages under certain conditions. The only exception to this rule is if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect. In this case, the settlement must be negotiated with both parties being represented by independent legal counsel, as stipulated by RCW 19.100.220(2).
In practical terms, this means that a Moe's Southwest Grill franchisee in Washington cannot be forced to give up their right to seek exemplary or punitive damages through the initial franchise agreement. This provides an added layer of protection for the franchisee, ensuring they can pursue full legal remedies if they experience damages caused by the franchisor's actions. However, it's important to remember that this right can be waived later in a settlement if specific conditions are met, including independent legal representation.