Under what circumstances can My Salon Suite franchisees seek treble damages?
My_Salon_Suite 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 — (r) of the FDD and Section 13 of the Franchise Agreement disclose the existence of certain covenants restricting competition to which Franchisee must agree. The Commissioner has held that covenants restricting competition contrary to Section 9-08-06 of the North Dakota Century Code, without further disclosing that such covenants may be subject to this statue, are unfair, unjust, or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The FDD and the Franchise Agreement are amended accordingly to the extent required by law. (FDD pages 230–274)
What This Means (2025 FDD)
According to the 2025 My Salon Suite Franchise Disclosure Document, franchisees may be able to seek treble damages under certain circumstances, as permitted by RCW 19.100.190. This means that provisions in the franchise agreement or other related documents that require franchisees to waive exemplary, punitive, or similar damages are considered void.
However, there is an exception to this rule. A My Salon Suite franchisee can waive their right to seek such damages if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect. Additionally, for this waiver to be valid, the franchisee must be represented by independent legal counsel during the negotiation of the settlement.
In essence, while My Salon Suite's franchise agreement cannot initially force a franchisee to waive their right to seek treble damages, a franchisee can agree to waive these rights later on, provided they have their own lawyer advising them during settlement negotiations. This protects the franchisee's ability to pursue such damages if necessary, while still allowing for flexibility in resolving disputes through negotiated settlements.