When is a waiver of exemplary or punitive damages valid for a Moes Southwest Grill franchise?
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, franchisees have the right to seek treble damages under certain circumstances as permitted by RCW 19.100.190. However, any provision that requires a franchisee to waive exemplary, punitive, or similar damages is generally considered void.
There is an exception to this rule. A waiver of exemplary or punitive damages is valid only if it is executed as part of a negotiated settlement after the franchise agreement is already in effect. Additionally, for the waiver to be valid, both Moe's Southwest Grill and the franchisee must be represented by independent legal counsel during the negotiation and execution of the settlement, in accordance with RCW 19.100.220(2).
This means that Moe's Southwest Grill cannot include a clause in the initial franchise agreement that forces you to waive your right to seek these types of damages. However, if a dispute arises after you've signed the agreement, and you enter into a settlement with Moe's Southwest Grill, you can agree to waive these damages, but only if you have your own lawyer advising you.