factual

Under what circumstances can a Degree Wellness franchisee seek treble damages?

Degree_Wellness Franchise · 2025 FDD

Answer 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 23 — Receipts (FDD pages 66–257)

What This Means (2025 FDD)

According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees may be able to seek treble damages under certain circumstances as permitted by RCW 19.100.190. However, any provisions in the franchise agreement that require franchisees to waive exemplary, punitive, or similar damages are void. An exception exists if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect, and both parties are represented by independent legal counsel, in accordance with RCW 19.100.220(2).

In essence, this means that Degree Wellness cannot include a clause in its standard franchise agreement that forces a franchisee to give up their right to pursue treble damages. The franchisee retains this right unless they specifically agree to waive it later during a settlement, with the protection of independent legal representation.

This provision is particularly relevant in Washington state, given the specific reference to Revised Code of Washington (RCW) sections. Prospective Degree Wellness franchisees should be aware of this protection, especially if they believe Degree Wellness has acted in bad faith or violated the franchise agreement in a way that causes significant financial harm. The ability to seek treble damages can provide a stronger legal recourse in such situations, potentially leading to a more favorable outcome for the franchisee.

It is important for potential Degree Wellness franchisees to consult with an attorney to fully understand their rights and the specific circumstances under which treble damages may be pursued in their jurisdiction. This ensures they are well-informed about their legal options and can make sound business decisions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.