Under what circumstances can a Bee Organized franchisee seek treble damages in Washington?
Bee_Organized 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 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, franchisees in Washington State have certain rights regarding damages. Specifically, RCW 19.100.190, a statute within the Washington Franchise Investment Protection Act, allows franchisees to seek treble damages under particular conditions. This means that a franchisee may be able to recover three times the amount of their actual damages if they can prove a violation of the Act.
However, Bee Organized cannot require franchisees to waive their right to seek exemplary, punitive, or similar damages, unless it is part of a negotiated settlement reached after the franchise agreement is already in effect. Furthermore, for such a waiver to be valid, the franchisee must be represented by independent legal counsel during the negotiation of the settlement, as stipulated by RCW 19.100.220(2). This provision aims to protect franchisees from being coerced into giving up their legal rights.
This protection is significant for prospective Bee Organized franchisees in Washington because it ensures that they retain the ability to pursue treble damages in cases of franchisor misconduct or violations of the Washington Franchise Investment Protection Act. The requirement for independent legal counsel in settlement negotiations further safeguards the franchisee's interests, ensuring that any waiver of rights is made knowingly and voluntarily. This aligns with the broader intent of franchise laws, which seek to balance the power dynamic between franchisors and franchisees.