Under what circumstances can a Carvel franchisee seek treble damages, and when are waivers of exemplary or punitive damages void?

According to Carvel's 2025 Franchise Disclosure Document, franchisees may be able to seek treble damages under certain circumstances, as permitted by RCW 19.100.190. This suggests that the franchise agreement itself does not outright prohibit a franchisee from pursuing such damages where legally allowed. This is relevant for prospective franchisees as it outlines their rights to seek more extensive compensation in specific legal situations. However, the FDD does not elaborate on what specific circumstances would allow for treble damages.

Waivers of exemplary, punitive, or similar damages within the franchise agreement are generally considered void. However, there is an exception: such waivers are valid if they are part of a negotiated settlement reached after the franchise agreement is already in effect. Additionally, for the waiver to be valid, both Carvel and the franchisee must be represented by independent legal counsel during these negotiations, in accordance with RCW 19.100.220(2).

This condition protects franchisees from unknowingly waiving important rights at the outset of the agreement. It ensures that any waiver of such damages is made with full legal representation and during a settlement process, implying a dispute resolution scenario. This is a beneficial provision for franchisees, as it prevents Carvel from including blanket waivers in the initial agreement that could limit the franchisee's ability to seek full compensation for damages in the future, provided they have independent counsel and the waiver is part of a settlement.