Under what circumstances can a Fat Shack franchisee seek treble damages in Washington?

The 2025 Fat Shack Franchise Disclosure Document (FDD) addresses the rights of franchisees in Washington state, particularly concerning waivers and releases. According to the FDD, a Fat Shack franchisee in Washington cannot release or waive their rights under the Washington Franchise Investment Protection Act (RCW 19.100) unless specific conditions are met.

Specifically, such a release or waiver is only permissible if it is executed as part of a negotiated settlement that occurs after the franchise agreement is already in effect. Furthermore, for the waiver to be valid, both Fat Shack and the franchisee must be represented by independent legal counsel during these negotiations. This provision aims to protect franchisees from unknowingly or unfairly relinquishing their rights under Washington state law.

This stipulation is significant for prospective Fat Shack franchisees in Washington because it ensures they retain the ability to pursue legal remedies available under the Franchise Investment Protection Act. This includes the possibility of seeking treble damages (three times the actual damages) if Fat Shack violates the Act. However, this right can only be waived under very specific circumstances: a post-agreement negotiated settlement with independent legal representation. Therefore, Washington franchisees should be aware of their rights under RCW 19.100 and ensure they have independent counsel if considering any release or waiver.