Under what circumstances can a Big Blue Swim School franchisee seek treble damages?

According to the 2025 Big Blue Swim School Franchise Disclosure Document, a franchisee's ability to seek punitive or exemplary damages, which can include treble damages, is governed by Illinois law. Specifically, the waiver of punitive and exemplary damages outlined in the franchise agreement does not apply to the extent prohibited by Section 705/41 of the Illinois Franchise Disclosure Act of 1987 or Illinois regulations at Section 260.609. This means that if Illinois law or regulations allow for such damages in certain situations, the franchisee is not waiving their right to pursue them.

This provision is further reinforced by a section in the franchise agreement that states any condition, stipulation, or provision that attempts to bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void. This ensures that franchisees retain the protections afforded to them under Illinois law, regardless of what the franchise agreement might otherwise state.

For a prospective Big Blue Swim School franchisee, particularly those operating in Illinois, this means they should be aware of their rights under the Illinois Franchise Disclosure Act. They should consult with legal counsel to understand the specific circumstances under which they might be entitled to seek punitive, exemplary, or treble damages, as these rights cannot be waived. This clause provides an added layer of protection for franchisees operating in Illinois, ensuring they are not disadvantaged by potentially restrictive clauses in the franchise agreement.