factual

Under what circumstances can a Chesters franchisee seek treble 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 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 23 — **RECEIPTS (FDD pages 48–197)

What This Means (2025 FDD)

According to Chesters's 2025 Franchise Disclosure Document, a franchisee may be able to seek treble damages under certain circumstances, as permitted by RCW 19.100.190. However, any provisions in the franchise agreement that require the franchisee to waive exemplary, punitive, or similar damages are considered void. An exception exists if the waiver is part of a negotiated settlement, agreed to after the franchise agreement is already in effect, and both parties are represented by independent legal counsel, in accordance with RCW 19.100.220(2).

This means that Chesters franchisees are not automatically prevented from seeking treble damages. The ability to pursue such damages is protected under Washington state law (RCW 19.100.190), and any attempt by Chesters to force a blanket waiver of these rights in the franchise agreement is unenforceable.

However, this protection has a specific exception. If a dispute arises after the franchise agreement is signed, and the franchisee, with the assistance of their own lawyer, agrees to a settlement that includes waiving the right to exemplary or punitive damages, that waiver will be valid. This exception acknowledges that parties can resolve disputes through negotiation, even if it means giving up certain legal claims. Therefore, a Chesters franchisee should seek independent legal counsel to fully understand their rights and options before signing any agreement that involves waiving potential damage claims.

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.