If a Best Brains franchisee in Washington seeks treble damages, are there any limitations?
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' 2025 Franchise Disclosure Document, franchisees in Washington are permitted to seek treble damages under certain conditions, as allowed by RCW 19.100.190. However, any provisions within the franchise agreement that require franchisees to waive exemplary, punitive, or similar damages are considered void.
There is an exception to this rule: a franchisee can waive these damages if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect. For this waiver to be valid, both parties must be represented by independent legal counsel, in accordance with RCW 19.100.220(2).
This means that Best Brains cannot enforce a clause in its standard franchise agreement that prevents a franchisee from seeking treble damages. However, if a dispute arises and the franchisee, with their own lawyer, agrees to waive the right to treble damages as part of a settlement, that specific waiver would be enforceable.