How does RCW 19.100.190 affect the ability of Cinnaholic franchisees to seek damages?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- **10.
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 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to the 2025 FDD, RCW 19.100.190 allows Cinnaholic franchisees in Washington to seek treble damages under certain conditions. This means that if a franchisee can prove they were significantly wronged, they may be able to recover three times the amount of their actual damages.
However, the Cinnaholic franchise agreement cannot force franchisees to waive their right to seek exemplary or punitive damages. There is an exception: a franchisee can waive these damages if it's part of a negotiated settlement, the agreement is made after the franchise agreement is already in effect, and both Cinnaholic and the franchisee have their own independent legal counsel.
This protection ensures that Cinnaholic franchisees are not forced into unfair agreements that limit their legal rights, especially concerning damages resulting from potential misconduct by the franchisor. It's a safeguard, allowing franchisees to pursue full compensation if they experience significant harm due to Cinnaholic's actions, while also allowing for flexibility in resolving disputes through negotiated settlements.