factual

Under what circumstances can Bumper Man franchisees seek treble damages?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Waiver of Exemplary & Punitive Damages.

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 22 — CONTRACTS (FDD page 45)

What This Means (2025 FDD)

According to the 2025 Bumper Man FDD, franchisees may be able to seek treble damages under certain circumstances, specifically in Washington state. RCW 19.100.190 permits franchisees to seek treble damages under certain circumstances. The franchise agreement cannot require franchisees to waive exemplary, punitive, or similar damages, unless it is part of a negotiated settlement after the agreement is in effect and the parties are represented by independent counsel, as per RCW 19.100.220(2). This means that Bumper Man franchisees in Washington have a statutory right that cannot be waived in the initial agreement.

This provision is significant because it protects franchisees from being forced to give up their right to seek substantial damages in case of franchisor misconduct. Treble damages can amount to three times the actual damages, serving as a strong deterrent against franchisor actions that harm franchisees. However, it's important to note that this protection is specifically tied to Washington state law (RCW 19.100.190 and RCW 19.100.220(2)), and the FDD does not specify the exact circumstances under which treble damages would be awarded; it only confirms the franchisee's right to pursue them where applicable under the law.

For a prospective Bumper Man franchisee, particularly in Washington, this clause offers a degree of security. It ensures that the franchisee retains the ability to seek significant financial recourse if Bumper Man engages in misconduct that causes damages. However, franchisees should consult with legal counsel to fully understand their rights and the specific conditions under which treble damages may be awarded in their jurisdiction. The FDD does not elaborate on what specific actions might warrant such damages, so further investigation and legal advice are essential.

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.