What damages can Alloy franchisees seek under RCW 19.100.190 in Washington?
Alloy 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 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees in Washington are permitted to seek treble damages under RCW 19.100.190 in certain circumstances. This means that a franchisee may be able to recover three times the amount of their actual losses if they can prove a violation of the Washington Franchise Investment Protection Act.
However, the Alloy franchise agreement cannot require franchisees to waive their right to seek exemplary, punitive, or similar damages. There is an exception to this rule: a waiver is allowed if it is part of a negotiated settlement, agreed to after the franchise agreement is already in effect, and both Alloy and the franchisee are represented by independent legal counsel, as specified in RCW 19.100.220(2).
This protection ensures that Alloy franchisees in Washington have the ability to pursue significant financial recovery in cases where they have been demonstrably harmed by Alloy's actions, while also preventing Alloy from using the franchise agreement to shield itself from potential misconduct. The ability to seek treble damages can be a powerful tool for franchisees, but it's important to note that it is not guaranteed and depends on the specific circumstances of each case.