Under what circumstances can a Caring Transitions franchisee seek treble damages?
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 certain circumstances, as permitted by RCW 19.100.190, which is part of the Washington Franchise Investment Protection Act. This means that a franchisee might be able to recover three times the amount of their actual damages if they can prove certain violations of the Act. 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. In this case, the franchisee must be represented by independent counsel, and the settlement must comply with RCW 19.100.220(2). This provision ensures that franchisees are not pressured into giving up their rights without proper legal representation and a fair negotiation process.
This information is particularly relevant for prospective franchisees in Washington state, as it highlights specific protections afforded to them under state law. It also suggests that franchisees should seek independent legal advice before signing any agreements that could potentially waive their rights to seek damages. Understanding these provisions can help franchisees make informed decisions and protect their interests throughout the duration of their franchise agreement with Caring Transitions.