Does the Alloy franchise agreement require franchisees to waive claims against Alloy for damages or injuries?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
mages and liabilities, however caused, arising directly or indirectly from, as a result of, or in connection with, the development, use and operation of your Facilities, as well as the costs, including attorneys' fees, of defending against them ("Franchise Claims"). Franchise Claims include, but are not limited to, those arising from any death, personal injury or property damage (whether caused wholly or in part through our or our affiliates' active or passive negligence), latent or other defects in any Facility, or your employment practices. If a Franchise Claim is made against us or our affiliates, we reserve the right in our sole judgment to select our own legal counsel to represent our interests, at your cost.
- B.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the franchise agreement addresses claims related to death, personal injury, or property damage. Specifically, the agreement states that franchise claims include those arising from death, personal injury, or property damage, regardless of whether Alloy's negligence contributed to the incident.
Additionally, the Alloy franchise agreement includes a mutual waiver of punitive or exemplary damages. This means that Alloy and its franchisees agree to waive their rights to claim punitive damages against each other in the event of a dispute, limiting any potential recovery to actual damages sustained.
For franchisees in certain states like California, there are specific stipulations. The California addendum to the Franchise Agreement indicates that provisions within the agreement, such as the waiver of punitive damages, may not be enforceable under California law. Similarly, addenda for Maryland and Minnesota state that no clause shall act as a waiver of any liability incurred under those states' franchise laws, including claims of fraud.