What relief can the arbitrator award in a 7 Brew franchise arbitration?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
EXCEPT FOR YOUR INDEMNIFICATION OBLIGATIONS UNDER SECTION 20.E AND CLAIMS BASED ON YOUR UNAUTHORIZED USE OF THE MARKS OR UNAUTHORIZED USE OR DISCLOSURE OF ANY CONFIDENTIAL INFORMATION, WE AND YOU (AND YOUR OWNERS) WAIVE TO THE FULLEST EXTENT THE LAW PERMITS ANY RIGHT TO OR CLAIM FOR ANY PUNITIVE, EXEMPLARY, TREBLE, AND OTHER FORMS OF MULTIPLE DAMAGES AGAINST THE OTHER AND AGREE THAT, IF THERE IS A DISPUTE BETWEEN US AND YOU (AND/OR YOUR OWNERS), THE PARTY MAKING A CLAIM WILL BE LIMITED TO EQUITABLE RELIEF AND TO RECOVERY OF ANY ACTUAL DAMAGES HE, SHE, OR IT SUSTAINS.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, in the event of a dispute, franchisees (and their owners) generally waive the right to claim punitive, exemplary, treble, and other forms of multiple damages against 7 Brew. This means that in arbitration, a franchisee's potential recovery is limited.
Specifically, the franchisee is restricted to seeking equitable relief, which might include actions like specific performance or injunctive relief, and recovering only the actual damages they have sustained. Actual damages typically cover direct financial losses proven to have resulted from the other party's actions or breach of contract.
However, there are exceptions to this waiver. Franchisees retain their right to seek punitive damages for claims based on their indemnification obligations under Section 20.E, as well as claims arising from the franchisee's unauthorized use of 7 Brew's marks or unauthorized use or disclosure of confidential information. This waiver of punitive damages is to the fullest extent the law permits.