Does the Aplus franchise agreement include a waiver of punitive damages for disputes between the franchisor and franchisee?

According to the 2024 Aplus 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 to the fullest extent permitted by law. In the event of a dispute, both parties are limited to recovering only the actual damages they sustained.

This waiver means that if a franchisee sues Aplus (or vice versa) and wins, they can only recover compensation for direct losses proven to have resulted from the dispute. They cannot receive additional damages intended to punish the other party for particularly bad behavior. This can significantly limit the potential financial recovery in a lawsuit.

Waivers of punitive damages are relatively common in franchise agreements. Franchise systems often seek to avoid the risk of large, unpredictable punitive damage awards. However, franchisees should carefully consider the implications of such a waiver, as it could limit their ability to be fully compensated if Aplus engages in misconduct that causes substantial harm.