factual

Does RCW 19.100.190 permit Chesters franchisees to seek exemplary and punitive damages?

Chesters Franchise · 2025 FDD

Answer from 2025 FDD Document

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 settlementafter the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).

Source: Item 23 — **RECEIPTS (FDD pages 48–197)

What This Means (2025 FDD)

According to Chesters's 2025 Franchise Disclosure Document, RCW 19.100.190 allows franchisees to seek treble damages under certain conditions. This means that Chesters franchisees in Washington State have the right to pursue significantly higher damage awards (three times the actual damages) if they can demonstrate specific violations or harm as defined under Washington law.

However, the FDD stipulates that any provisions in the franchise agreement that require a franchisee to waive their right to seek exemplary, punitive, or similar damages are considered void. There is an exception: such waivers are permissible only if they are part of a negotiated settlement reached after the franchise agreement is already in effect, and both Chesters and the franchisee are represented by independent legal counsel. This ensures that franchisees cannot be forced to give up their rights to these damages upfront but can choose to do so later in a settlement with proper legal advice.

This clause protects Chesters franchisees from unknowingly or unfairly relinquishing their rights to seek punitive damages, ensuring they have the potential to be fully compensated for damages suffered due to violations of the Washington Franchise Investment Protection Act. Prospective franchisees should consult with an attorney to fully understand their rights and potential remedies under Washington law.

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.