What is the limitation on damages for both the 7 Brew Owner and Manufacturer regarding indirect, consequential, or other special damages?

According to 7 Brew's 2025 Franchise Disclosure Document, Article 8(c) outlines the limitations on damages. It states that neither party (the Owner or the Manufacturer), nor their respective officers, employees, or representatives, can be held liable to each other or any third party for any indirect, consequential, incidental, special, punitive, or exemplary damages.

This limitation extends to various types of damages, including but not limited to lost business, lost profits, damage to goodwill or reputation, degradation in the value of brands, trademarks, tradenames, service names or service marks, or injury to persons. This applies regardless of whether the damages arise from breach of contract, warranty, tort (including negligence, failure to warn, or strict liability), contribution, indemnity, subrogation, or any other legal basis.

For a prospective 7 Brew franchisee, this means that if the franchisee suffers indirect damages like lost profits due to a problem with the unit, they generally cannot recover those losses from the Manufacturer. Similarly, the Manufacturer is protected from claims for consequential damages that might arise from their actions or failures. This type of clause is common in franchise agreements to allocate risk and prevent potentially large damage claims that could arise from unforeseen or indirect consequences.