Under what circumstances can a City Wide franchisee seek treble damages in Washington?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
IN NO EVENT SHALL CITY WIDE OR ANY OF ITS SUPPLIERS HAVE ANY LIABILITY TO FRANCHISEE OR ANY OTHER PERSON HEREUNDER FOR CONSEQUENTIAL, PUNITIVE, SPECIAL OR INCIDENTAL DAMAGES OF ANY KIND WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTION, LOSS OF BUSINESS INFORMATION OR ANY OTHER PECUNIARY LOSS) RELATED TO THIS AGREEMENT OR RESULTING FROM FRANCHISEE'S USE OR INABILITY TO USE THE TECHNOLOGY SYSTEM, ARISING FROM ANY CAUSE OF ACTION WHATSOEVER, INCLUDING CONTRACT, WARRANTY, STRICT LIABILITY, OR NEGLIGENCE (EVEN IF CITY WIDE HAS BEEN NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES).
This Agreement will be governed by and construed in accordance with the laws of the State of Kansas.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the circumstances under which a City Wide franchisee can seek treble damages in Washington are not explicitly detailed. The document outlines general limitations of liability for City Wide, stating that City Wide is not liable for consequential, punitive, special, or incidental damages related to the agreement or the franchisee's use of the technology system, even if City Wide has been notified of the possibility of such damages. The agreement also states that it is governed by the laws of Kansas.
However, the FDD does not specifically address whether Washington state law might allow for treble damages under certain circumstances, nor does it detail how the interplay between Kansas law (governing the agreement) and Washington law (where the franchise operates) would be resolved in a dispute. The document generally discusses dispute resolution and indemnification but does not provide specifics on treble damages.
Therefore, a prospective City Wide franchisee in Washington should seek clarification from the franchisor regarding the potential for treble damages under Washington law and how this interacts with the governing law of the franchise agreement. It would also be prudent to consult with a legal professional to understand their rights and potential liabilities under both the franchise agreement and applicable state laws.