What damages can Caring Transitions franchisees seek under RCW 19.100.190?
Caring_Transitions 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 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees may be able to seek treble damages under RCW 19.100.190 in certain situations. This means that a franchisee could potentially recover three times the amount of their actual damages if they prevail in a legal claim under this statute. However, any provisions in 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 their right to seek such damages if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect. Additionally, for the waiver to be valid, both Caring Transitions and the franchisee must be represented by independent legal counsel during the negotiation of the settlement, as stipulated by RCW 19.100.220(2).
This clause protects franchisees from unknowingly or unfairly giving up their rights to seek additional damages in cases of misconduct by Caring Transitions. It ensures that any waiver is made knowingly and voluntarily, with the benefit of legal advice. Prospective franchisees should understand the circumstances under which they might be entitled to treble damages and the conditions under which they can validly waive this right.