Does the Aplus franchise agreement allow for the recovery of punitive damages in the event of a dispute?

According to Aplus's 2024 Franchise Disclosure Document, the franchise agreement includes a waiver of punitive damages. Specifically, both Aplus and the franchisee agree to waive any right to claim punitive or exemplary damages against each other. In the event of a dispute, both parties are limited to recovering only the actual damages they sustain.

This waiver means that if a franchisee believes Aplus has acted wrongly, even intentionally, the franchisee can only recover compensation for direct financial losses. They cannot seek additional damages intended to punish Aplus for their conduct. This is a significant limitation, as punitive damages can sometimes substantially increase the amount recovered in a lawsuit.

Such waivers are relatively common in franchise agreements. Prospective Aplus franchisees should carefully consider the implications of this provision. They should assess their risk tolerance and consider the potential impact on their ability to seek full compensation in case of a serious dispute with Aplus. It would be prudent to discuss this clause with a legal professional experienced in franchise law to fully understand its ramifications.