In the event of a dispute, what is the limit to the recovery of damages for a Baya Bar franchisee?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.7 Waiver of Certain Damages. Franchisee and each Principal, if any, hereby waive, to the fullest extent permitted by law, any right to or claim for any punitive, exemplary, incidental, indirect, special, consequential or other damages (including, without limitation, loss of profits) against Franchisor, its affiliates, and their respective officers, directors, shareholders, partners, agents, representatives, independent contractors, servants and employees, in their corporate and individual capacities, arising out of any cause whatsoever. Each of Franchisee and Principals, if any, agree that in the event of a dispute, Franchisee and each Principal shall be limited to the recovery of any actual damages sustained.
- 20.8 Limitations of Claims. Any and all claims asserted by Franchisee arising out of or relating to this Agreement or the relationship among the parties will be barred unless a proceeding for relief is commenced within one (1) year from the date on which Franchisee knew or should have known of the facts giving rise to such claims.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees and principals are waiving their rights to claim punitive, exemplary, incidental, indirect, special, consequential, or other damages, including loss of profits, against Baya Bar, its affiliates, and their respective officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, and employees, in their corporate and individual capacities, arising out of any cause whatsoever. Franchisees and principals agree that in the event of a dispute, they will be limited to recovering any actual damages sustained.
This means that a Baya Bar franchisee would only be able to recover direct, out-of-pocket losses if they were to sue Baya Bar. They could not, for example, claim lost future profits or seek additional penalties designed to punish Baya Bar for misconduct. This is a significant limitation on the legal remedies available to the franchisee.
Additionally, any claims asserted by a Baya Bar franchisee arising out of or relating to the Franchise Agreement or the relationship among the parties will be barred unless a proceeding for relief is commenced within one year from the date on which the franchisee knew or should have known of the facts giving rise to such claims. This means that franchisees have a limited time to bring any claims against Baya Bar.