Does Amerispec Inspection Services waive punitive damages in Covered Disputes?

According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, both the franchisor and franchisee agree to waive the right to recover special, consequential, exemplary, or punitive damages in Covered Disputes. This mutual waiver means that neither party can seek these types of damages from the other, which are typically intended to punish the wrongdoer or set an example for others. This waiver applies under the agreement, with a few exceptions.

Amerispec Inspection Services does not waive punitive damages for claims related to the franchisee's obligation to indemnify the franchisor and the franchisor's indemnities for third-party claims. Punitive damages are also not waived for claims related to the franchisee's infringement of the franchisor's intellectual property, or for claims related to any franchisee's breach of confidentiality obligations or improvements made by the franchisee.

This waiver of punitive damages is a significant legal provision that could impact a franchisee's potential recovery in case of a dispute. While it limits exposure to large damage awards, it also restricts the franchisee's ability to seek full compensation for certain types of harm. Prospective franchisees should carefully consider the implications of this waiver and consult with legal counsel to understand their rights and obligations under the franchise agreement.