What is the limitation on the recovery of damages in the event of a dispute between Angry Chickz and the Developer?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
EXCEPT FOR PUNITIVE, EXEMPLARY AND OTHER FORMS OF MULTIPLE DAMAGES AVAILABLE TO ANY PARTY UNDER FEDERAL LAW OR OWED TO THIRD PARTIES WHICH ARE SUBJECT TO INDEMNIFICATION UNDER THIS AGREEMENT, COMPANY AND DEVELOPER (AND DEVELOPER'S OWNERS) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM FOR ANY PUNITIVE, EXEMPLARY OR OTHER FORMS OF MULTIPLE DAMAGES AGAINST THE OTHER AND AGREE THAT, IN THE EVENT OF A DISPUTE BETWEEN US AND YOU, THE PARTY MAKING A CLAIM WILL BE LIMITED TO EQUITABLE RELIEF AND TO RECOVERY OF ANY ACTUAL DAMAGES IT SUSTAINS.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, in the event of a dispute between Angry Chickz and the Developer, the party making a claim will be limited to equitable relief and recovery of actual damages sustained. This means that a party can only recover the direct financial losses they incurred as a result of the dispute.
This limitation explicitly waives the right to claim punitive, exemplary, or other forms of multiple damages against the other party, to the fullest extent permitted by law. However, this waiver does not extend to punitive, exemplary, or multiple damages available under federal law or those owed to third parties that are subject to indemnification under the agreement.
This waiver of punitive damages and limitation on recovery to actual damages is a significant consideration for potential Angry Chickz developers. It means that the potential upside of a claim is capped, but it also limits the potential downside exposure. Franchisees should carefully consider this provision and consult with legal counsel to understand its implications fully.