When is a Best Brains franchisee permitted to seek treble damages?
Best_Brains Franchise · 2025 FDDAnswer 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's 2025 Franchise Disclosure Document, franchisees are permitted 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: a franchisee can waive the right to seek such damages if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect. In this case, the franchisee must be represented by independent counsel, and the waiver must comply with RCW 19.100.220(2).
In practical terms, this means that Best Brains franchisees generally retain the right to pursue treble damages unless they specifically agree to waive that right during a settlement negotiation where they have their own lawyer. This protects franchisees from being forced to give up their legal rights upfront in the franchise agreement.