When is a Zoomin Groomin franchisee's waiver of exemplary or punitive damages considered void?
Zoomin_Groomin 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 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, a franchisee's waiver of exemplary, punitive, or similar damages is generally void under Washington law. However, there's an exception: such a waiver is permissible if it's part of a negotiated settlement reached after the franchise agreement is already in effect. In this specific case, both Zoomin Groomin and the franchisee must be represented by independent legal counsel during these negotiations. This exception aligns with the stipulations outlined in RCW 19.100.220(2).
For prospective Zoomin Groomin franchisees in Washington, this means that any initial agreement to waive the right to seek exemplary or punitive damages is not enforceable. This protection allows franchisees to pursue such damages under certain circumstances, as permitted by RCW 19.100.190, which allows for seeking treble damages. However, franchisees should be aware that if they enter into a settlement agreement later, with independent counsel, a waiver of these damages can become valid.
For Zoomin Groomin franchisees operating in North Dakota, any waiver of punitive damages will not apply to them. This means that North Dakota franchisees retain their right to pursue punitive damages, regardless of any waiver they may have signed.
It is important for franchisees to consult with legal counsel to fully understand their rights and obligations under both the franchise agreement and applicable state laws, especially concerning waivers and settlements.