Does the All Dogs Unleashed agreement allow for the waiver of punitive damages?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.7.
WAIVER OF PUNITIVE DAMAGES.
THE PARTIES HEREBY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM OF ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER AND AGREE THAT IN THE EVENT OF A DISPUTE BETWEEN THEM EACH SHALL BE LIMITED TO THE RECOVERY OF ANY ACTUAL DAMAGES SUSTAINED BY IT.
- 19.8.
Contractual Limitations Period.
You (and your officers, directors, owners and guarantors) expressly agree that no claim or cause of action may be filed or maintained against us and/or any of our present and former owners, officers, directors, employees, representatives, affiliates, parent companies, subsidiaries, predecessor, successors and assigns (each a "Franchisor Related Party") arising out of or relating to this Agreement, the relationship established by this Agreement, the offer and sale of the franchise opportunity, the Equipment, and/or the operation of the Franchised Business unless such claim or cause of action is filed before the expiration of the "Limitations Period".
For purposes of this paragraph, the term "Limitations Period" means: one (1) year from the earlier of: (a) the date of the act, transaction or occurrence giving rise to the claim against us or a Franchisor Related Party; or (b) the date on which you (your officers, directors, owners and/or guarantors) knew or reasonably should have known of the facts or circumstances giving rise to the claim against us or a Franchisor Related Party.
Notwithstanding the foregoing, if the Limitations Period is unenforceable under Texas law (or, in the event a court or an arbitrator determines a different
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, the franchise agreement includes a waiver of punitive damages. Specifically, both All Dogs Unleashed and the franchisee agree to waive any right to claim punitive or exemplary damages against each other. In case of a dispute, both parties are limited to recovering only the actual damages they sustained. This waiver is intended to the fullest extent permitted by law.
However, there are some exceptions to this waiver. If a final legal determination finds that punitive damages cannot be waived, any recovery by either party in arbitration or another forum is capped at two times the actual damages. An exception exists for All Dogs Unleashed, which may recover more than two times their actual damages if the franchisee commits acts of willful trademark infringement or violates the Lanham Act.
This waiver of punitive damages and the limitation on recovery could significantly impact a franchisee's potential compensation in a dispute with All Dogs Unleashed. While it protects both parties from excessive damage claims, it also limits the franchisee's ability to seek full compensation, especially in cases involving gross negligence or intentional misconduct by All Dogs Unleashed (unless trademark infringement is involved). Prospective franchisees should carefully consider this limitation and consult with legal counsel to understand its implications fully.