Under what circumstances can Ledgers franchisees seek treble damages?

According to Ledgers' 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 executed as part of a negotiated settlement 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 while Ledgers' franchise agreement might contain clauses that appear to prevent a franchisee from seeking punitive damages, these clauses are not enforceable under Washington state law in certain situations. Specifically, a franchisee retains the right to pursue treble damages unless they have knowingly and voluntarily waived that right in a settlement agreement reached after the franchise agreement was signed, and with the benefit of independent legal advice.

This protection is particularly relevant for prospective franchisees in Washington, as it ensures they do not unknowingly forfeit their rights to seek full compensation in cases of serious misconduct by Ledgers. It is important for franchisees to understand their rights under both the franchise agreement and applicable state laws, and to seek independent legal counsel when negotiating any settlements or waivers.