Does the waiver of punitive damages in the Apricot Lane franchise agreement extend to the franchisee's owners?

According to the 2025 Apricot Lane Franchise Disclosure Document, the waiver of punitive damages does extend to the franchisee's owners. Except for indemnification obligations and claims based on unauthorized use of marks or confidential information, Apricot Lane and the franchisee (including its owners) waive any right to claim punitive, exemplary, or treble damages against each other. In a dispute, the claiming party is limited to equitable relief and recovery of actual damages. This waiver is to the fullest extent permitted by law.

This means that, as an Apricot Lane franchisee, you and your owners are giving up the right to seek punitive damages from Apricot Lane, and vice versa, in most dispute scenarios. Punitive damages are intended to punish a party for egregious behavior and are awarded in addition to actual damages. By agreeing to this waiver, you are limiting your potential recovery to only the direct financial losses you've suffered.

This type of waiver is relatively common in franchise agreements. It aims to reduce the potential financial exposure of both parties in the event of a dispute and encourages resolution based on actual harm rather than the threat of large punitive awards. However, it's important to understand that this could limit your ability to be fully compensated if Apricot Lane engages in particularly egregious misconduct that causes you harm, unless it involves indemnification obligations, unauthorized use of marks, or unauthorized use/disclosure of confidential information.

It is important to note the exceptions to this waiver. The waiver does not apply to indemnification obligations under Section 21.C, claims based on unauthorized use of the marks, or unauthorized use or disclosure of any confidential information. This means that if a claim falls under one of these exceptions, the right to claim punitive damages is not waived.