factual

What damages can Best Brains franchisees seek under RCW 19.100.190?

Best_Brains Franchise · 2025 FDD

Answer 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 21 — FINANCIAL STATEMENTS (FDD page 42)

What This Means (2025 FDD)

According to Best Brains' 2025 Franchise Disclosure Document, RCW 19.100.190 allows franchisees to seek treble damages under certain conditions. This means that a Best Brains franchisee in Washington 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 FDD also states that 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: a waiver is permissible if it is part of a negotiated settlement reached after the franchise agreement is already in effect, and both Best Brains and the franchisee are represented by independent legal counsel, in accordance with RCW 19.100.220(2).

In practical terms, this means that Best Brains cannot force a franchisee to give up their right to seek treble damages at the outset of the franchise relationship. However, if a dispute arises later, and the parties reach a settlement agreement with legal representation, the franchisee can agree to waive such damages as part of that settlement. This provision aims to protect franchisees from unknowingly giving up important legal rights while still allowing for flexibility in resolving disputes through negotiation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.