Are there any exceptions to the mutual waiver of punitive damages for Amerispec Inspection Services?

According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, both the franchisor and franchisee waive the right to recover special, consequential, exemplary, or punitive damages under the agreement. However, there are specific exceptions to this mutual waiver.

The waiver does not apply to claims related to the franchisee's obligation to indemnify Amerispec Inspection Services, or to the franchisor's indemnities for third-party claims as described in paragraph 22, which covers independent contractors and indemnification. Additionally, the waiver does not extend to claims regarding the franchisee's infringement of Amerispec Inspection Services's intellectual property. Finally, the waiver does not apply to claims related to the franchisee's breach of obligations under paragraph 14, which concerns confidentiality and improvements made by the franchisee.

For a prospective Amerispec Inspection Services franchisee, this means that while punitive damages are generally waived, there are specific scenarios where they may still be pursued. These exceptions primarily relate to protecting the franchisor's interests regarding indemnification, intellectual property, and confidentiality. It is important for franchisees to understand these exceptions and their obligations under the franchise agreement to avoid potential exposure to punitive damages in these specific cases. Franchisees in North Dakota should note that any waiver of exemplary and punitive damages is unenforceable under North Dakota law.