Can a Fat Shack franchisee seek treble damages in Washington?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR WASHINGTON FRANCHISEES ONLY:
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act, RCW 19.100, or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
IN WITNESS WHEREOF, the parties have executed this Agreement under seal, with the intent that this be a sealed instrument, as of the day and year first above written.
FRANCHISOR:
FAT SHACK INC., a Delaware corporation: By: FRANCHISEE: By:
ATTACHMENT L (TO DISCLOSURE DOCUMENT)
STATE ADDENDA TO FRANCHISE DISCLOSURE DOCUMENT
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, a release or waiver of rights executed by a franchisee in Washington cannot include rights under the Washington Franchise Investment Protection Act, RCW 19.100, or any rule or order thereunder. There is an exception if the release is executed pursuant to a negotiated settlement after the franchise agreement is in effect, and both parties are represented by independent counsel. This means that Fat Shack franchisees in Washington generally cannot waive their rights under Washington's franchise law unless specific conditions are met during a settlement.
This provision protects franchisees by ensuring they do not unknowingly or unfairly relinquish their legal rights at the outset of the franchise relationship. The requirement for independent counsel and a negotiated settlement aims to ensure that any waiver is informed and voluntary. This is particularly important in franchise agreements, where there can be a significant power imbalance between the franchisor and franchisee.
However, the FDD does not explicitly address whether a Fat Shack franchisee can seek treble damages. The document states that neither Fat Shack nor the franchisee shall be liable for punitive or other damages not measured by the other party's actual damages, except as may be required by statute, in any action between the parties. Because the document does not specify whether treble damages are available under the Washington Franchise Investment Protection Act, it is important to consult with legal counsel to determine whether such damages are recoverable in Washington.