When can a Stretch Zone franchisee waive exemplary, punitive, or similar damages in Washington?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, Washington state law has specific regulations regarding the waiver of exemplary, punitive, or similar damages by franchisees. RCW 19.100.190 allows franchisees to seek treble damages under certain conditions.
Specifically, any provisions within the Stretch Zone franchise agreement (or related documents) that require a franchisee to waive the right to seek exemplary, punitive, or similar damages are considered void. However, there is an exception to this rule. A Stretch Zone franchisee can waive these damages if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect.
For such a waiver to be valid in Washington, the Stretch Zone franchisee must be represented by independent legal counsel during the negotiation of the settlement. This ensures that the franchisee's rights are protected and that the waiver is made knowingly and voluntarily. This is in accordance with RCW 19.100.220(2).