Under what circumstances can Cinnaholic franchisees seek treble 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 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees may be able to seek treble damages under specific conditions, as permitted by Washington state law (RCW 19.100.190).
Specifically, any provisions within the franchise agreement or related documents that require a Cinnaholic franchisee to waive exemplary, punitive, or similar damages are considered void. However, there's an exception: such waivers are permissible if they are part of a negotiated settlement reached after the franchise agreement is already in effect. In addition, both parties must be represented by independent legal counsel during these negotiations, in accordance with RCW 19.100.220(2).
This means that while Cinnaholic's standard franchise agreement cannot force a franchisee to give up their right to seek treble damages, a franchisee can voluntarily agree to waive these damages as part of a settlement of a dispute, provided they have their own lawyer advising them. This ensures that franchisees are not pressured into waiving important legal rights without proper representation.