Under what circumstances can Bee Organized franchisees seek treble damages?

According to Bee Organized's 2025 Franchise Disclosure Document, franchisees may be able to seek treble damages under certain circumstances, as permitted by RCW 19.100.190. However, any provisions in the franchise agreement that require franchisees to waive exemplary, punitive, or similar damages are void. There is an exception to this rule, which applies when a negotiated settlement is executed after the franchise agreement is already in effect, and both parties are represented by independent legal counsel, in accordance with RCW 19.100.220(2).

This means that Bee Organized cannot enforce a clause in its standard franchise agreement that prevents a franchisee from seeking treble damages. However, if a dispute arises and the parties reach a settlement agreement with the help of independent lawyers, the franchisee can waive their right to seek such damages as part of that settlement. This provision aims to protect franchisees from being forced to give up their legal rights upfront while still allowing for flexibility in resolving disputes through negotiation.

This type of clause is included to comply with franchise laws in certain states, like Washington, that aim to protect franchisees' rights. Prospective Bee Organized franchisees should be aware of this provision, particularly if they anticipate potential disputes with the franchisor. It is advisable to seek independent legal counsel to fully understand their rights and options under the franchise agreement and applicable state laws.