In the event of a dispute with Amorino, is a franchisee permitted to claim punitive or exemplary damages?

According to Amorino's 2025 Franchise Disclosure Document, franchisees waive the right to claim punitive or exemplary damages against Amorino. The FDD states that both Amorino and the franchisee agree that in the event of a dispute, each party will be limited to the recovery of actual damages sustained. This waiver is applicable to the fullest extent permitted by law.

This waiver of punitive damages has significant implications for prospective franchisees. It means that in any dispute with Amorino, a franchisee can only recover direct financial losses and cannot seek additional damages intended to punish Amorino for alleged misconduct. This could limit the potential financial recovery in cases where Amorino's actions are particularly egregious but do not result in substantial direct financial harm.

Waivers of punitive damages are relatively common in franchise agreements. Franchisees should carefully consider the implications of this clause and consult with legal counsel to understand their rights and potential limitations in the event of a dispute with Amorino. While franchisees can still pursue actual damages, the inability to claim punitive damages may reduce their leverage in negotiations or litigation.