Can either party be liable to the other for consequential damages in disputes involving Aunt Millies Bakeries?

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, both Aunt Millie's Bakeries and the distributor agree that neither party will be liable for consequential, incidental, indirect, special, punitive, or exemplary damages. This means that if a dispute arises, neither party can claim damages beyond direct losses, such as lost profits or opportunities. All claims to such damages are waived.

This waiver has significant implications for prospective franchisees. It limits the potential financial recovery in case of a dispute with Aunt Millies Bakeries. For example, if Aunt Millies Bakeries breaches the agreement in a way that causes the distributor to lose a major contract, the distributor may not be able to recover the profits they would have made from that contract. This limitation of liability is designed to protect both parties from potentially large and unpredictable damage claims.

Such limitations on damages are relatively common in franchise agreements. Prospective franchisees should carefully consider the implications of this clause and consult with legal counsel to understand their rights and potential risks. Understanding this clause is crucial for assessing the overall risk and reward of investing in an Aunt Millies Bakeries franchise.