factual

Under what circumstances can Del Taco franchisees seek treble damages?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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, franchisees in Washington may be able to seek treble damages under certain conditions, as permitted by RCW 19.100.190. Specifically, any provisions in the franchise agreement or related documents that require franchisees to waive exemplary, punitive, or similar damages are considered void. However, there is an exception: such waivers are permissible if they are 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).

This means that Del Taco franchisees in Washington have the right to pursue treble damages if they believe they have a valid claim, unless they've explicitly waived this right under the specific conditions mentioned above (negotiated settlement with independent counsel). This protection is afforded by Washington state law, which takes precedence over any conflicting terms in the franchise agreement.

For a prospective Del Taco franchisee in Washington, this is a significant protection. It ensures that they are not forced to give up their right to seek substantial damages in case of serious issues with the franchise, unless they knowingly and willingly agree to do so as part of a settlement. It is important for franchisees to be aware of this right and to seek independent legal advice before signing any waivers or settlements that could affect their ability to claim damages.

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.