Do the liquidated damages for loss of bargain cover all potential damages Azal Coffee may be entitled to?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
The liquidated damages for loss of bargain described in this Section cover only our damages from the loss of revenue as a result of our being unable to operate, or to allow a third party to operate, a Store at the Franchise Location. You and each of your owners agree that these liquidated damages do not cover any other remedies or damages to which we may be entitled as a result of your actions or inactions, including without limitation, past-due fees and expenses owed to us, injunctive relief to enforce trademark violations and restrictions on competition, and do not give us an adequate remedy at law for any default under, or for the enforcement of, any other provision of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the liquidated damages for loss of bargain do not cover all potential damages to which Azal Coffee may be entitled. The liquidated damages are intended to cover damages from the loss of revenue if Azal Coffee is unable to operate, or allow a third party to operate, a store at the franchise location.
The franchise agreement specifies that these liquidated damages do not cover other remedies or damages that Azal Coffee may be entitled to due to a franchisee's actions or inactions. These include, but are not limited to, past-due fees and expenses, injunctive relief for trademark violations and competition restrictions.
In essence, while liquidated damages aim to compensate Azal Coffee for lost revenue from the specific franchise location, they do not provide a comprehensive remedy for all potential breaches or violations of the franchise agreement. Azal Coffee retains the right to pursue additional legal avenues to recover other losses or enforce compliance with the agreement.