Under what circumstances can a Chicken Guy franchisee seek treble damages in Washington?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Questionnaires and Acknowledgments. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document executed in connection with the franchise.
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- Prohibitions on Communicating with Regulators. Any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).
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- Advisory Regarding Franchise Brokers. Under the Washington Franchise Investment Protection Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
Based on the 2025 Chicken Guy Franchise Disclosure Document, the circumstances under which a Chicken Guy franchisee in Washington can seek treble damages are not explicitly detailed within the provided excerpts. However, the FDD includes provisions that protect franchisees' rights under Washington state franchise law. Specifically, any statements or acknowledgments signed by a franchisee cannot waive claims related to fraud in the inducement or disclaim reliance on statements made by Chicken Guy or its representatives. This suggests that if a franchisee believes they were fraudulently induced into signing the franchise agreement, they retain the right to pursue claims under applicable state laws.
Furthermore, the FDD states that any provisions prohibiting a franchisee from communicating with regulators are unlawful under Washington law. This ensures franchisees can report concerns without fear of retribution. The document also advises franchisees to carefully evaluate information provided by franchise brokers, indicating an awareness of potential misrepresentations during the franchise sales process. These stipulations collectively reinforce the franchisee's ability to seek remedies available under Washington law if they believe their rights have been violated.
While the FDD excerpts do not specifically mention "treble damages," the inclusion of the above protections implies that a Chicken Guy franchisee in Washington retains all rights and remedies available under Washington state law. A prospective franchisee should consult with a legal professional to fully understand their rights and potential remedies, including the possibility of seeking treble damages, in the event of a dispute with Chicken Guy.