What is the impact of RCW 19.100.190 on damage waivers in the Alloy franchise agreement?
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, RCW 19.100.190 affects damage waivers within the franchise agreement for franchisees operating in Washington state. Specifically, this statute allows franchisees to seek treble damages under certain conditions.
The Washington Addendum to the Franchise Agreement modifies any provisions that require franchisees to waive exemplary, punitive, or similar damages. Such waivers are considered void, unless they are part of a negotiated settlement agreed upon after the franchise agreement is already in effect. Furthermore, for the waiver to be valid, both Alloy and the franchisee must be represented by independent legal counsel, as stipulated by RCW 19.100.220(2).
In practical terms, this means that if an Alloy franchisee in Washington state experiences damages that would typically be subject to waivers in the franchise agreement, RCW 19.100.190 provides them with the potential to seek significantly higher damages (treble damages) than they might otherwise be entitled to. However, this right is contingent on the waiver not being part of a post-agreement settlement where both parties have legal representation. This addendum ensures that Alloy franchisees in Washington are afforded the protections provided by Washington state law, which can supersede conflicting terms in the standard franchise agreement.