Can a Caring Transitions franchisee seek treble damages in Washington?
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 in Washington may be able to seek treble damages under certain conditions. Specifically, RCW 19.100.190 permits franchisees to seek treble damages under certain circumstances. 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. Additionally, for such a waiver to be valid, both parties must be represented by independent legal counsel, as stipulated by RCW 19.100.220(2).
This means that while Caring Transitions cannot initially prevent a franchisee from seeking treble damages, a franchisee can later agree to waive this right during a settlement if they have their own lawyer. This ensures that franchisees are not forced to give up their rights at the outset but can make informed decisions later with proper representation. This provision aims to protect franchisees' rights under Washington law while allowing for flexibility in resolving disputes through negotiated settlements.