Does the limitation of liability outlined in Section 11 of the Auntie Annes agreement survive the expiration or termination of the agreement?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
- d. THE REMEDIES IN THIS AGREEMENT ARE FRANCHISEE'S SOLE AND EXCLUSIVE REMEDIES RELATED TO THE SUPPORT SERVICES AND THIS AGREEMENT.
- e. THE PROVISIONS OF THIS SECTION 11 SHALL SURVIVE EXPIRATION OR TERMINATION OF THIS AGREEMENT.
12. Term and Termination.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the provisions outlined in Section 11 regarding the limitation of liability do indeed survive the expiration or termination of the franchise agreement. This means that even after the agreement ends, the limitations on Auntie Annes's liability, as defined in that section, will continue to apply.
Specifically, Section 11 addresses the scope of Auntie Annes's responsibilities and potential liabilities related to support services provided to the franchisee. It states that Auntie Annes makes no warranties and disclaims any representations, express or implied, regarding the support services. The section further limits Auntie Annes's liability to actual losses or direct damages for a material breach of support services, up to a maximum of six months of service fees paid by the franchisee during the period of the breach. It also specifies that Auntie Annes will not be liable for lost revenue, sales, profit, or certain other types of damages.
The survival clause in Section 11 ensures that these limitations remain in effect even after the franchise agreement has ended, providing Auntie Annes with continued protection from certain claims. For a prospective franchisee, this means understanding that these limitations on liability will persist, even after the business relationship concludes. This could impact the franchisee's ability to seek recourse from Auntie Annes for issues arising from support services, even after the franchise term.