Under the Aplus lease, are there any circumstances where claims for special or consequential damages are allowed?

According to Aplus's 2024 Franchise Disclosure Document, the franchisee waives the right to claim consequential, punitive, or exemplary damages against Aplus. The franchisee's maximum recoverable damages for any claims, whether arising under contract or tort law, are limited to a refund of the franchise fee and royalty fees paid to Aplus within the past 18-month period. This waiver is applicable to the extent permitted by law.

This means that if an Aplus franchisee believes they have suffered damages due to Aplus's actions or omissions, their potential financial recovery is capped. They cannot seek compensation for indirect losses (consequential damages) or damages intended to punish Aplus (punitive or exemplary damages). The limitation to the franchise fee and royalties paid in the previous 18 months could be significantly less than the actual losses incurred by the franchisee, especially if the business has been operating for a longer period or has experienced substantial losses.

This limitation of damages is a significant point for prospective franchisees to consider. It restricts their ability to recover full compensation for potential harm caused by Aplus, potentially leaving them with uncovered losses. Franchisees should consult with legal counsel to fully understand the implications of this waiver and assess the potential financial risks involved in the franchise agreement. This type of clause is not uncommon in franchise agreements, but the specific limitations and terms can vary widely, so careful review is essential.