What damages are the parties limited to in the event of a dispute between Apricot Lane and the franchisee?

According to Apricot Lane's 2025 Franchise Disclosure Document, in the event of a dispute, both Apricot Lane and the franchisee are limited in the types of damages they can claim against each other. Specifically, both parties waive, to the fullest extent permitted by law, any right to or claim for punitive, exemplary, treble, or other forms of multiple damages. This means that neither party can seek to punish the other through inflated damage awards.

Instead, the party making a claim is limited to seeking equitable relief and recovering only the actual damages they sustained. Equitable relief typically involves a court order requiring a party to do something or refrain from doing something, such as enforcing a contract or preventing the use of confidential information. Actual damages refer to the direct financial losses suffered as a result of the other party's actions.

However, there are exceptions to this waiver. The waiver of punitive damages does not apply to indemnification obligations under Section 21.C of the agreement, nor does it apply to claims based on unauthorized use of Apricot Lane's marks or unauthorized use or disclosure of any confidential information. In these specific cases, the parties may be able to seek punitive or other types of damages beyond actual damages. This limitation on damages and the exceptions are important considerations for a prospective franchisee, as they define the potential financial exposure in case of a dispute with Apricot Lane.