What damages can Cinnaholic franchisees seek under RCW 19.100.190 in Washington?
Cinnaholic 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 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, franchisees in Washington are permitted to seek treble damages under RCW 19.100.190 in certain circumstances. This means that if a Cinnaholic franchisee successfully proves a violation covered by this statute, they may be awarded three times the amount of their actual damages.
The FDD also states that any provisions in the franchise agreement or other related documents that require a Cinnaholic franchisee to waive exemplary, punitive, or similar damages are void. However, there is an exception: such waivers are allowed if they are part of a negotiated settlement reached after the franchise agreement is already in effect, and both Cinnaholic and the franchisee are represented by independent legal counsel, as per RCW 19.100.220(2).
In practical terms, this means that Cinnaholic cannot force a franchisee to give up their right to seek treble damages upfront in the franchise agreement. This protection is designed to ensure that franchisees are not unfairly disadvantaged and have recourse if Cinnaholic violates the Franchise Investment Protection Act. However, franchisees should be aware that they can voluntarily agree to waive these damages later on if they are settling a dispute with Cinnaholic and have their own lawyer advising them.