What conditions must be met for a Del Taco franchisee to seek treble damages?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, the ability of a franchisee to seek treble damages is addressed specifically within the context of Washington state law. RCW 19.100.190 permits franchisees in Washington to seek treble damages under certain circumstances. However, any provisions within the Del Taco franchise agreement or related documents that require franchisees to waive exemplary, punitive, or similar damages are considered void.
There is an exception to this rule. A Del Taco franchisee can waive their right to exemplary, punitive, or similar damages if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect. Furthermore, for such a waiver to be valid, the franchisee must be represented by independent legal counsel during the negotiation of the settlement, as stipulated by RCW 19.100.220(2).
In practical terms, this means that while Del Taco franchisees in Washington generally retain the right to pursue treble damages, they can knowingly and voluntarily relinquish this right under specific conditions. These conditions include engaging in a negotiated settlement with Del Taco after the franchise agreement has commenced and having independent legal representation during these negotiations. This ensures that any waiver is made with full knowledge of the franchisee's rights and is not the result of coercion or undue influence.